HUDCO Credit Rating Affirmed at ‘BBB-’ with Stable Outlook by Fitch Ratings
New Delhi: Housing and Urban Development Corporation Limited (HUDCO) has had its long-term foreign and local currency issuer default ratings (IDRs) affirmed at ‘BBB-’ with a Stable Outlook by Fitch Ratings, Singapore, in a press release dated 11 February 2026. The rating on HUDCO’s INR 50 billion medium-term note programme has also been affirmed at the same level.
HUDCO is a Government-Related Entity (GRE) rated under Fitch’s GRE criteria, with credit linkage to India’s sovereign rating (BBB-/Stable). Fitch noted that HUDCO benefits from:
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Government Support: The Indian government holds 75% of HUDCO’s equity and provides strong oversight via the Ministry of Housing and Urban Affairs. Extraordinary support from the government is assessed as ‘Virtually Certain’ under Fitch’s GRE criteria.
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Strategic Policy Role: HUDCO plays a critical role in advancing India’s affordable housing and urban infrastructure initiatives, including project appraisal, subsidy disbursement, and long-tenor concessional lending for lower-income segments.
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Robust Financial Performance: HUDCO demonstrates strong earnings momentum, low impaired asset ratios (0.07% of net NPA), and diversified funding sources, including secured and unsecured bonds, bank loans, and largely hedged foreign-currency borrowings.
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Contagion Risk Mitigation: HUDCO’s prominence in domestic capital markets ensures that any default would have wide-ranging implications, reinforcing incentives for government support.
Fitch affirmed that HUDCO’s ratings are equalized with India’s sovereign rating and reflect the entity’s sound operational and financial fundamentals, as well as the government’s backing, rather than any changes to its business profile.
About HUDCO:
HUDCO is a policy-driven financial institution that provides affordable housing finance and non-commercial urban infrastructure financing in India, with a focus on lower-income households and sustainable urban development.
For more information: www.hudco.org