Tata Power receives upgrade in long term credit ratings

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Capital Market
Last Updated : Nov 05 2020 | 12:31 PM IST
Tata Power announced that CRISIL has upgraded its rating of the company to 'CRISIL AA' from 'CRISIL AA-' on the non-convertible debentures and long-term bank facilities. The outlook on the rating has been revised to 'Stable' from 'Positive'. The rating on Tata Power's commercial paper programme has been reaffirmed at CRISIL A1+.

The rating upgrade has been driven by the deleveraging initiatives such as sale of non-core assets (South African wind asset and shipping business) and the preferential allotment of equity undertaken by the Company. The rating factors in management's intent to keep net debt to EBITDA sustainably below 3.5 times including by divesting majority stake in the renewable portfolio through a proposed Infrastructure Investment Trust (InvIT).

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First Published: Nov 05 2020 | 12:12 PM IST

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