ICRA reaffirms high rating on Tata Power

PTI New Delhi | Updated on March 17, 2011

Credit agency ICRA has retained the high rating on power utility Tata Power’s debt programmes worth Rs 3,100 crore.

It has reaffirmed ‘LAA and A1+’ ratings for Tata Power’s Rs 2,600-crore non-convertible debenture (NCD) programme and Rs 500-crore commercial paper/short-term debt programme, respectively.

The long-term rating carrier a positive outlook,” Tata Power said in a statement today.

LAA and A1+ ratings refer to high credit quality and low credit risk.

The reaffirmation of ratings takes into account the significant progress achieved in execution of the greenfield power projects at Mundra (4,000 MW) in Gujarat and Maithon (1,050 MW) in Jharkhand.

“The rating agency has also taken cognizance of the stable cash flows generated from the company’s operations in the licensee business and the overall favourable financial profile on a standalone basis characterised by healthy profitability levels and comfortable capital structure,” the statement said.

Published on March 17, 2011

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