ICRA reaffirms high ratings for Tata Power's 2 debt programs

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

Credit rating agency ICRA 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.

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.