Credit Rating

HUDCO/List. Comp./SE/2026 16th October, 2026 Listing Department Listing Department BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers Exchange Plaza, Plot No. C/1, G Block Dalal Street Bandra-Kurla Complex, Bandra (E) Mumbai – 400001 Mumbai – 400051 SCRIP CODE: 540530 SCRIP CODE: HUDCO Subject: Announcement under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 - International Credit Rating by Moody’s Ratings, Singapore ------------------------------------------------------------------------------------------------------ Sir/Madam, In compliance with Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, this is to inform that Moody’s Ratings, Singapore has, by Press Release, communicated as under: - Moody’s Ratings, Singapore - has completed the periodic review and affirmed the ratings of Housing and Urban Development Corporation Limited (HUDCO) at “Baa3” level with ‘Stable’ outlook, equivalent to that of India’s Sovereign Rating. The Press Release in this regard issued by Moody’s Ratings is attached. This is for your information and record. Yours sincerely For Housing and Urban Development Corporation Limited Vikas Goyal Company Secretary & Compliance Officer Rating Action: Moody's Ratings affirms Housing and Urban Development Corp Ltd's Baa3 rating, outlook stable 16 Oct 2026 Singapore, October 16, 2026 -- Moody's Ratings (Moody's) has affirmed the Baa3 local currency (LC) and foreign currency (FC) issuer ratings of Housing and Urban Development Corp Ltd (HUDCO). We have also affirmed HUDCO's (P)Baa3 LC and FC senior unsecured medium-term note (MTN) program ratings. The outlook on HUDCO's ratings remains stable, reflecting the stable outlook on India's sovereign rating. RATINGS RATIONALE HUDCO's Baa3 issuer ratings are one notch above its ba1 standalone assessment to reflect our assumption of a very high level of support from Government of India (Baa3 stable), in times of need. Our assessment of government support for HUDCO is supported by its strong linkages with the government, reflected by the 75% ownership; and the entity's role in implementing key government policies related to housing and urban infrastructure. The government appoints two directors on the company's Board. HUDCO's ba1 standalone assessment reflects our view that financial profile will remain stable in next 12-18 months. HUDCO's problem loans ratio, based on Stage 3 loans as a percentage of total outstanding loans, declined to 1.0% as of June 2026 from 3.4% as of March 2023. We expect asset quality to remain stable over the next 12–18 months, given its lending primarily to government related projects which constitutes around 99% of its loan book as of June 2026. We expect profitability, measured by net income to average managed asset to remain broadly stable over the next 12-18 months. We expect net interest margins to decline amid an increase in competition for infrastructure for commercially viable projects. However, low provisioning costs and operating expenses will support its profitability. HUDCO's Tangible Common Equity to Tangible Managed Assets ratio declined to 12.7% at the end of March 2026 from 14.1% a year earlier, reflecting rapid loan growth and dividend payouts. However, its reported capital adequacy ratio was 39.4% as of June 2026, supported by the high proportion of lending backed by state government guarantees, which remains over 85% of total loans. These factors help offset the risks from rapid loan growth. Its government links also support strong access to domestic capital markets and bank borrowings, mitigating the risks associated with its high reliance on wholesale funding and modest liquidity. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS WHAT COULD MOVE THE RATINGS UP HUDCO's issuer ratings are at the same level as India's Baa3 sovereign rating, and therefore, we could upgrade its ratings if the sovereign rating is upgraded. We could improve HUDCO's standalone assessment if the company's liquidity significantly improves over a sustained period such that it provides a buffer against adverse market conditions, while its asset quality and capitalization remain stable. WHAT COULD MOVE THE RATINGS DOWN We could downgrade HUDCO's issuer ratings if the sovereign rating is downgraded or if government support for the company weakens. We could lower HUDCO's standalone assessment if its asset quality materially deteriorates, as reflected in its problem loans ratio rising to above 5%; if its capitalization weakens to the point that its TCE/TMA ratio falls to below 9.5%; or if it materially increases its exposure to higher-risk assets and the associated risks are not adequately mitigated by support, such as government guarantees or budgetary support. The principal methodology used in these ratings was Finance Companies published in July 2024 and available at https://ratings.moodys.com/rmc-documents/425167. Alternatively, please see the Rating Methodologies page on https://ratings.moodys.com for a copy of this methodology. The net effect of any adjustments applied to rating factor scores or scorecard outputs under the primary methodology(ies), if any, was not material to the ratings addressed in this announcement. Housing and Urban Development Corp Ltd is headquartered in New Delhi and reported total consolidated assets of around INR1.7 trillion as of 31 March 2026. REGULATORY DISCLOSURES For further specification of Moody's key rating assumptions and sensitivity analysis, see the sections Methodology Assumptions and Sensitivity to Assumptions in the disclosure form. Moody's Rating Symbols and Definitions can be found on https://ratings.moodys.com/rating-definitions. For any affected securities or rated entities receiving direct credit support/credit substitution from another entity or entities subject to a credit rating action (the supporting entity), and whose ratings may change as a result of a credit rating action as to the supporting entity, the associated regulatory disclosures will relate to the supporting entity. Exceptions to this approach may be applicable in certain jurisdictions. For ratings issued on a program, series, category/class of debt or security, certain regulatory disclosures applicable to each rating of a subsequently issued bond or note of the same series, category/class of debt, or security, or pursuant to a program for which the ratings are derived exclusively from existing ratings, in accordance with Moody's rating practices, can be found in the most recent Credit Rating Announcement related to the same class of Credit Rating. For provisional ratings, the Credit Rating Announcement provides certain regulatory disclosures in relation to the provisional rating assigned, and in relation to a definitive rating that may be assigned subsequent to the final issuance of the debt, in each case where the transaction structure and terms have not changed prior to the assignment of the definitive rating in a manner that would have affected the rating. Moody's does not always publish a separate Credit Rating Announcement for each Credit Rating assigned in the Anticipated Ratings Process or Subsequent Ratings Process. These ratings are solicited. Please refer to Moody's Policy for Designating and Assigning Unsolicited Credit Ratings available on its website https://ratings.moodys.com. Regulatory disclosures contained in this press release apply to the credit rating and, if applicable, the related rating outlook or rating review. The Global Scale Credit Rating(s) discussed in this Credit Rating Announcement was(were) issued by one of Moody's affiliates outside the EU and UK and is(are) endorsed for use in the EU and UK in accordance with the EU and UK CRA Regulation. Please see https://ratings.moodys.com for any updates on changes to the lead rating analyst and to the Moody's legal entity that has issued the rating. Please see t [Showing first 8,000 characters — download PDF for full document]