Credit profile of Indian power utilities likely to remain steady: Fitch

This is despite cash collection delays amid Covid-19 pandemic, as favourable regulatory frameworks ensure stable operating profits, rating agency says

Fitch rating agency
Fitch does not anticipate major operating issues during India's pandemic-related lockdown, as electricity supply and coal mining are classified as essential services

The credit profile of regulated Indian power utilities like NTPC will remain largely unaffected despite cash collection delays amid the coronavirus pandemic. The rating of these entities is due to favourable regulatory frameworks that ensure stable operating profits, according to Fitch Ratings. “We believe any delays in recovering accrued revenue will be recouped with interest costs, in line with slated regulations,” the rating agency said in a statement.. The assets of NTPC Limited (BBB-/Stable) and the Adani Electricity Mumbai Limited (AEML) obligor group (US ...