Fitch Ratings has assigned Housing and Urban Development Corporation Limited (HUDCO) Long-Term Foreign-Currency and Local-Currency Issuer Default Ratings of 'BBB-'. The Outlook is Stable.
HUDCO is a policy institution that accepts deposits and provides housing finance. It is regulated by the National Housing Bank (NHB) and under the administrative control of India's Ministry of Housing and Urban Affairs (MOHUA). The company's key mission is to support the construction of affordable housing for lowerqcome households and the development of non-commercial urban infrastructure.
Fitch classifies HUDCO as a government-related entity (GRE) that is credit linked to the Indian sovereign (BBB-/Stable/F3). This is attributable to our assessment of the entity's strong legal status, control and oversight, very strong level of historical financial support, and very strong socio-political and financial implications of a potential default.
These factors mean there is a strong likelihood of HUDCO receiving extraordinary state support, if required. The assessment translates into an overall support score of 55 under our Government-Related Entities Rating Criteria, leading to the equalisation of HUDCO's rating with the Indian sovereign, regardless of the entity's standalone credit profile.
Fitch has not assigned HUDCO a standalone credit profile as it is difficult to detach the entity from the government framework in which it operates. In addition, HUDCO's entire loan book is directed towards its core policy focus segment.
Shares of Housing and Urban Development Corporation Ltd was last trading in BSE at Rs.44.65 as compared to the previous close of Rs. 46.05. The total number of shares traded during the day was 217037 in over 2629 trades.
The stock hit an intraday high of Rs. 46.2 and intraday low of 44.45. The net turnover during the day was Rs. 9772911.