HUDCO : MOODY'S AFFIRMS BAA3 RATING WITH STABLE OUTLOOK

• Moody's Ratings affirmed HUDCO's Baa3 local and foreign currency issuer ratings and (P)Baa3 MTN programme ratings • Outlook stable, reflecting the stable outlook on India's sovereign rating • Issuer rating sits one notch above ba1 standalone assessment on assumption of very high Government of India support; GoI holds 75% • Problem loans ratio (Stage 3) fell to 1.0% as of June 2026 from 3.4% as of March 2023; government-related projects are ~99% of loan book • Capital adequacy ratio 39.4% as of June 2026, with state government guarantees over 85% of total loans • Caution: net interest margins expected to decline amid rising competition for infrastructure financing; TCE/TMA eased to 12.7% in March 2026 from 14.1% Impact: Neutral (Sovereign-linked rating affirmation with stable outlook and improving asset quality, offset by expected margin compression)

Housing & Urban Development Corporation Ltd

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