OREANDA-NEWS. Fitch Ratings has today affirmed and withdrawn India-based Housing and Urban Development Corporation Limited's (HUDCO) Long-Term Issuer Default Rating (IDR) of 'BBB-' with Stable Outlook.

A full list of rating actions is at the end of this commentary.

KEY RATING DRIVERS

HUDCO's ratings are affirmed based on Fitch's view of the sovereign's high propensity to support HUDCO, should there be a need. This is because the company is 100% state owned, and it has a policy role in urban social infrastructure (for example, area development, water supply, sewerage and drainage) and housing for the economically weaker section and low-income group segment.

HUDCO has also received regular funding support from the state through annual budgetary allocations and regulatory forbearance in the form of higher exposure limits due to its policy role. For example, in the current financial year ending 31 March 2016, HUDCO has been allowed to raise up to INR50bn via tax-free bonds.

Fitch has chosen to withdraw HUDCO's rating as the rating is no longer considered relevant to the agency's coverage. Fitch will no longer provide rating or analytical coverage of this issuer.

RATING SENSITIVITIES

No longer relevant as the ratings have been withdrawn

The rating actions are as follows:
Long-Term IDR affirmed at 'BBB-' ; Outlook Stable
Short-Term IDR affirmed at 'F3'
Support Rating affirmed at '2'
Support Rating Floor affirmed at 'BBB-'
All the ratings have been simultaneously withdrawn.