TEXT-Fitch Goldman Sachs India Finance affirmed at 'Fitch AAA(ind)'/stable

Aug 08 - Fitch Ratings has affirmed India-based Goldman Sachs (India) Finance Private Limited's (GIFL) National Long-Term rating at 'Fitch AAA(ind)' with a Stable Outlook. A full list of ratings is provided at the end of this commentary.

GIFL's ratings reflect Fitch's expectation of continued support from its ultimate parent, The Goldman Sachs Group, Inc., (GS; Long-Term Issuer Default Rating: 'A'/ Stable, Viability Rating: ?a'). GIFL is fully owned by GS and its operations are closely integrated with the GS group's global practices, policies and systems.

The ratings could be downgraded if the linkages between GIFL and GS are deemed by Fitch to have weakened or if GS's Viability Rating is downgraded closer to India's 'BBB-' sovereign rating.

GIFL is an important part of GS's fixed income, currencies and commodities (FICC) business globally. GIFL is also an important part of GS's Indian business, which includes investment banking, broking, asset management and primary dealership. GIFL is engaged in financing activities, including structured credit, loans, investing in pass through certificates, public sector/corporate bonds, certificates of deposits and the government of India securities.

GIFL's ratings:

National Long-Term rating: affirmed at 'Fitch AAA(ind)'; Outlook Stable

INR5bn long-term debt: affirmed at National Long-Term 'Fitch AAA(ind)'

INR10bn short-term commercial paper: affirmed at National Short-Term 'Fitch A1+(ind)'

INR500m unsecured redeemable non-convertible market-linked debentures: affirmed at National Long-Term 'Fitch AAAemr(ind)'

The suffix 'emr' denotes the exclusion of the embedded market risk from the rating. Ratings of the market-linked debentures is an ordinal assessment of the underlying credit risk of the instrument and does not factor in the market risk that investors in such instruments will assume. This market risk stems from the fact that coupon payment on these instruments will be based on the performance of a reference index or equity share (detailed in the information memorandum of the issue).