Credit rating agency Icra has placed the long-term rating of AAA for various debt programmes of Power Finance Corporation (PFC) and Rural Electrification Corporation (REC) under watch, with developing implications. The move comes after the Centre gave 'in principle' approval for strategic sale of its existing 52.63 per cent of the total paid-up equity share-holding in REC to PFC, along with transfer of management control. The agency has also reaffirmed the rating of A1+ to the short-term borrowing programme of the two companies. "The ratings for REC drew significant strength from its sovereign ownership, and with the proposed acquisition by PFC - the management control and ownership would be transferred to PFC. Thus, PFC's own credit profile would have a bearing on REC's rating, and the former's own capitalisation profile is likely to be affected after the proposed acquisition," Icra said in its latest report.