Morgan Stanley Assigns ‘Overweight’ Rating to PFC and REC Amid Expected 12% CAGR Loan Growth

Published On: 10/07/20250.8 min read

Morgan Stanley has upgraded the ratings of Power Finance Corporation (PFC) and Rural Electrification Corporation (REC) to ‘Overweight,’ anticipating a robust 12% compound annual growth rate (CAGR) in their loan portfolios. This positive outlook reflects confidence in the expanding financing demands within the power sector, driven by increasing infrastructure investments and renewable energy projects.

Both PFC and REC, key players in India’s power sector financing landscape, stand to benefit from sustained credit growth backed by supportive government policies and sectoral reforms. The expected growth trajectory positions these companies favorably amidst the current market environment, marked by volatility and mixed performances across sectors.

Investors observing global and domestic market cues may find the updated ratings promising, as Morgan Stanley highlights the growth potential and resilience of PFC and REC’s loan books in the coming years. This endorsement underscores the importance of the power sector’s financing ecosystem in India’s broader economic recovery and development plans.

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