Housing & Urban Development Corporation Limited — Credit Ratings, 09-05-2025: Credit Rating

CARE Ratings has reaffirmed HUDCO’s credit rating at CARE AAA; Stable for long-term instruments and CARE A1+ for bank facilities and commercial paper, while assigning CARE AAA; Stable to new long-term bonds worth ₹42,199 Cr. The rating reflects HUDCO’s strong government backing, robust capitalisation with a capital adequacy ratio of 48.3%, and a growing asset base—AUM up ~41% to ₹1,18,931 Cr—supported by government guarantees. Stable profitability with RoTA at 2.4% also underpins the rating. However, the concentrated loan book, with the top 20 exposures at 81%, remains a risk to watch. The stable rating ensures continued access to low-cost borrowing and sustained investor confidence.