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CARE Ratings reaffirms stable outlook credit rating of A- for Jindal Power

CARE Ratings has reaffirmed stable outlook credit rating for Jindal Power

Press Trust of India  |  New Delhi 

Jindal Power and Steel Limited complex at Nisha village in a file photo. Improved coal availability, cost controls, reducing supply to exchanges improved power show. Photo: Reuters
Jindal Power and Steel Limited complex at Nisha village in a file photo. Improved coal availability, cost controls, reducing supply to exchanges improved power show. Photo: Reuters

has reaffirmed stable outlook credit rating for Jindal Power, a subsidiary of Ltd (JSPL).

"CARE has reaffirmed stable outlook credit rating of A- (Single A minus) to which operates the 3,400 MW OP Jindal Super Thermal Power Plant at Tamnar, Chhattisgarh," said in a statement Friday.

According to information on website, instruments with CARE A rating are considered to have an adequate degree of safety regarding timely servicing of financial obligations.

Such instruments carry low credit risk, while the modifier (-) reflects comparative standing within the category.

The 'stable' outlook indicates expected stability (or retention) of the credit ratings in the medium term.

further said the reaffirmation of the rating was amid cost competitiveness of the company's power plants and their favourable location leading to competitive variable cost.

"The ratings also derive comfort from revenue visibility from medium/long term PPAs (power purchase agreements) in place for its capacity and demonstrated ability of the company to enter into short-term PPAs and undertake merchant sales at remunerative tariffs," it added.

First Published: Fri, October 05 2018. 14:40 IST
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