Crisil reaffirms high safety rating on Tata Power instruments

Tata Power today said that ratings agency Crisil has reaffirmed a high safety rating on its debts instruments and bank facilities.

The high safety rating is on account of sound business and financial risk profile of Tata Power and its group companies, it said in a filing to the Bombay Stock Exchange (BSE).

"Tata Power today announced that Crisil has affirmed 'AA/Positive/P1+' rating assigned to its non-convertible debentures (NCD) programme, short-term debt and bank facilities," the private sector power giant said.

The 'AA' rating is issued to long-term instruments and are judged to offer a high degree of safety with regard to timely payment of financial obligations. The P1 rating indicates the same for short-term instruments.

According to the filing, Crisil has arrived at these ratings after combining the business and financial risk profiles of Tata Power and its group companies.

The group firms include North Delhi Power, Tata Power Trading Company, Powerlinks Transmission, Industrial Energy Ltd, besides some special purpose vehicles like Coastal Gujarat Power and Maithon Power.

"Crisil has also combined the business and financial risk profiles of Tata Power's coal operating companies in Indonesia...," it said.

Commenting on the ratings, Tata Power Executive Director (Finance) s Ramakrishnan said: "The continued positive ratings on our loans and debentures issues is a reiteration of the company's stable licensee business that has regulated returns...."

Crisil also pointed to Tata Power's strong management, stable and healthy accruals, sound liquidity and strong financial flexibility.

The company is currently undertaking two SPVs -- the 4,000 Mw Coastal Gujarat Power Ltd (CGPL) and the 1,050 Mw Maithon Power.

While CGPL is expected to on stream by early 2011-12, Maithon will commence commercial operations by the second quarter of this fiscal.