Fitch rates REC Ltd's proposed USD notes BBB-minus

Hong Kong, July 5 : Fitch Ratings has assigned REC Ltd's proposed senior unsecured notes a rating of BBB-minus.
The proposed notes will be issued from REC's existing USD7 billion global medium-term note programme.
The net proceeds will be used for financing power projects in accordance with the approvals granted by the Reserve Bank of India and the guidelines for external commercial borrowings.
Fitch said the proposed notes are rated in line with REC's long-term issuer default rating on the basis that they will be issued under REC's programme and will constitute its direct, unconditional and unsecured obligations and rank pari passu with all its other outstanding unsecured and unsubordinated obligations.
REC provides financial assistance to state electricity boards, state governments, power utilities, independent power producers, rural electric cooperatives and private sector utilities.
Its business activities involve financing projects in the complete power sector value chain: generation, transmission, distribution and renewable energy.