Japan Credit Rating Agency (JCR) has affirmed a BBB+ rating with a stable outlook for Housing and Urban Development Corporation Limited (HUDCO) for both foreign and local currency long-term issuer ratings. The ratings reflect HUDCO’s critical role in India’s housing and urban development initiatives and its strong ties with the Government of India. This affirmation indicates confidence in HUDCO’s financial stability and strategic importance to the nation.
Rating Affirmation Details
Japan Credit Rating Agency (JCR) has announced the affirmation of Housing and Urban Development Corporation Limited’s (HUDCO) BBB+ rating for both Foreign Currency and Local Currency Long-term Issuer Ratings. The outlook for both ratings is stable. This decision was officially released on December 3, 2025.
Rationale for the Rating
The affirmation is based on HUDCO’s position as a key public financial institution supporting housing construction and urban infrastructure development in India. The ratings reflect HUDCO’s close integration with the Government of India (GoI) and its role in implementing government-led projects. JCR views HUDCO’s relationship with the GoI as strong, noting the company’s strategic importance and personnel ties.
Key Factors Supporting the Rating
The rating considers HUDCO’s strong capital and personnel ties with the GoI, its critical position as a financing arm for housing and urban development projects, and its integration with the GoI. By the end of September 2025, the government shareholding had declined to 75%, and no further divestment is planned.
Financial Performance and Outlook
HUDCO’s loan portfolio has been on an upward trend, driven by domestic demand for housing and urban development. For FY2025, outstanding loans increased substantially by 35% year-on-year. Consolidated revenue from operations and net profit reached record highs of INR 103.1 billion and INR 27.1 billion, respectively.
Asset Quality
HUDCO’s loan portfolio remains sound, with around 90% of the portfolio guaranteed by the central and state governments. The capital to risk-weighted assets ratio stood at 46.6% at the end of FY2025, well above the regulatory requirement of 15%. The nonperforming loan ratio stood at 1.67% on a gross basis and 0.25% on a net basis as of the end of FY2025.
Source: BSE