S&P Global assigns 'BBB-' rating to NTPC's masala bonds

S&P Global Ratings today assigned 'BBB-' long-term issue rating to state-run power giant NTPC's proposed rupee-denominated offshore bond under its USD 4 billion senior unsecured medium-term notes programme.
The rating is subject to our review of the final issuance documentation, S&P Global Ratings said in a statement.
"We expect India's transparent regulatory environment for power and NTPC's strong market position and increasing generation capacity to support the firm's business risk profile. Execution risk, increasing leverage, and the weak credit quality of NTPC's major customers -- State Electricity Utilities (SEUs)-- offset these strengths," it said.
"The stable outlook on NTPC reflects our expectation that the company's ratio of funds from operations to debt is likely to stay about 9 per cent. We anticipate the commissioning of new projects and revenue growth to gradually offset the increase in debt for new capacity additions. The rating on NTPC will move in tandem with the sovereign credit rating on India," it added.