Housing & Urban Development Corporation Limited (HUDCO) has had its credit ratings reaffirmed by CARE Ratings Limited. The long-term facilities and various bond issuances have been assigned a rating of CARE AAA with a Stable outlook. Short-term bank facilities and commercial paper have been rated CARE A1+.

The reaffirmation reflects HUDCO's strategic importance to the Government of India (GoI) and its strong parentage, with the GoI holding a 75.0% stake. The ratings are also supported by the quality of its portfolio, with a majority of assets backed by Central or State Government guarantees. HUDCO's asset quality metrics have shown an improving trajectory, with net non-performing assets (NNPA) at 0.07% as of September 30, 2025. The company maintains a diversified resource profile, relatively low gearing, and an adequate liquidity profile. Its capital adequacy ratio (CAR) remains comfortable at 38.03% as of September 30, 2025. Profitability has been healthy, with a return on average total assets (RoTA) of 1.9% for H1FY26 and 2.4% in FY25. Following its transition to an NBFC-IFC in August 2024, HUDCO's disbursements towards infrastructure financing have increased, leading to a year-on-year growth of approximately 35% in its assets under management (AUM) in FY25 and about 30% in H1FY26.