Fitch Ratings has today affirmed India-based infrastructure finance company IDFC long-term issuer default Rating (IDR) at 'BBB-'. The outlook is stable.

The rating affirmation is a reflection of IDFC's current stand-alone credit profile and builds on our expectation that its profile will ultimately benefit from greater diversification after it launches a bank in October 2015. IDFC will assume the role of the group's ultimate holding company and the expectation is that, for all practical purposes, the bulk of its assets and liabilities will move to the bank as part of the transition.

Fitch believes that the bank will be no different from IDFC (as it is currently) from a risk perspective, although IDFC's financial profile will likely undergo structural changes after its transition to a holding company is complete. The way IDFC manages this change to both its business and risk profiles will be an important consideration for the rating in future. IDFC is expected to hold 51% in the bank through a wholly owned step-down non-operating financial holding company (NOFHC).