Fitch’s Indian arm to start rating infra debt funds

Infrastructure debt funds (IDF) are set to get their own investment rating that would make them a more transparent and credible option for investors.

India Ratings has come out with a new product for rating of IDFs. This is very important because this will give confidence to investors especially from overseas like Sovereign Wealth Fund and pension funds, said Arvind Mayaram,secretary,department of economic affairs,adding that other investors too can assess their options through such ratings.

The rating agency on Monday also released its rating on the mutual fund schemes of the IDF- Series 1 launched by IL&FS Financial Services Ltd with a corpus of $1 billion. The schemes,with a Rs 500 crore each,were assigned a rating of IND AAA idf-mf,which denotes the highest strength of credit promotion factors.

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Meanwhile,IL&FS Infra Asset Management Limited on Monday also signed a joint memorandum of understanding with eight public sector banks Allahabad Bank,Bank of India,Canara Bank,Central Bank of India,Indian Bank,Indian Overseas Bank,Oriental Bank of Commerce,UCO Bank for acquisition of infrastructure loans of the IL&FS IDF.

Mayaram said the agreement would help further movement on take out finance. Several IDFs have been set up. Today large number of banks have come together and they have signed an MoU with one of the IDFs for the purpose take out finance. This will ensure that banks can in the future step out of a project and allow IDFs to take over.

Israel Prime Minister Benjamin Netanyahu addresses the 80th session of the United Nations General Assembly, Friday, Sept. 26, 2025. (AP Photo/Richard Drew)

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