CARE Ratings Limited has reaffirmed the CARE AAA; Stable rating for Housing and Urban Development Corporation Limited’s (HUDCO) long-term/short-term bank facilities and bonds. Additionally, the CARE A1+ rating for commercial paper has been reaffirmed. This rating action reflects HUDCO’s strategic importance to the Government of India and its healthy financial performance. The total amount of facilities reaffirmed is significant, underscoring HUDCO’s key role in infrastructure finance.
Credit Ratings Reaffirmed
CARE Ratings Limited has reaffirmed the credit ratings for Housing and Urban Development Corporation Limited (HUDCO). The ratings reaffirmation includes long-term/short-term bank facilities, bonds, and commercial paper. These ratings were formally announced on January 14, 2026, following a detailed review of HUDCO’s financial and operational performance.
Details of Reaffirmed Ratings
The long-term/short-term bank facilities, amounting to ₹80,000 crore, have been reaffirmed at CARE AAA; Stable / CARE A1+. Various bonds with different amounts have also been reaffirmed at CARE AAA; Stable. The commercial paper, with an amount of ₹10,000 crore, has been reaffirmed at CARE A1+. These ratings indicate a high degree of safety regarding timely servicing of financial obligations.
Rationale for the Ratings
The reaffirmation of these ratings factors in HUDCO’s status as a strategically important entity to the Government of India (GoI), its strong parentage with the GoI as a major shareholder (75.0% stake), and the company’s adequate asset quality. HUDCO’s net non-performing assets (NNPA) stood at 0.07% as of September 30, 2025. HUDCO’s Capital Adequacy Ratio (CAR) stood at 38.03% as on September 30, 2025. The company reported a return on average total assets (RoTA) of 1.9% for H1FY26 and 2.4% in FY25.
Transition to NBFC-IFC
Post the transition from a non-banking finance company – housing finance company (NBFC-HFC) to non-banking finance company – infrastructure finance company (NBFC-IFC) in August 2024, HUDCO’s disbursements towards infrastructure financing have increased. The company’s assets under management (AUM) grew by ~35% in FY25 and by ~30% in H1FY26.
Source: BSE
