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Mumbai, Aug. 27 The corporate credit rating of Tata Power Co. Ltd and its $300 million senior unsecured bonds have been lowered to BB- from BB+ on Friday by Standard and Poor’s Rating Services.

The rating is removed from CreditWatch, where it was placed on May 9 with negative implications, after the company’s acquisition of Coastal Gujarat Power Ltd., a special purpose entity formed for financing and executing the Rs 17,000 crore Mundra ultra mega power project.

Tata Power subsequently announced the finalisation of agreements to acquire 30 per cent equity in two Indonesian coal producers, PT Kaltim Prima Coal and PT Arutmin Indonesia, for about US$1.1 billion.

Standard & Poor’s considers that these outlays, in addition to the company’s ongoing expansion plans, would radically increase Tata Power’s consolidated debt, in comparison with its existing operating cash flows.

More Stories on : Corporate Bonds | Credit Rating | Tata Power Co. Ltd | Power

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