Rating agency CRISIL has upgraded the ratings of Tata Power Company Ltd on its non-convertible debentures (NCDs) and long-term bank facilities. The company said in a statement that, “CRISIL has upgraded its rating of the Tata Power Company Limited (Tata Power) to ‘CRISIL AA’ from ‘CRISIL AA-’ on the NCDs and long-term bank facilities."
November 05, 2020. By Manu Tayal
Rating agency CRISIL has upgraded the ratings of utility giant Tata Power Company Ltd on its non-convertible debentures (NCDs) and long-term bank facilities.
The company said in a statement that, “CRISIL has upgraded its rating of the Tata Power Company Limited (Tata Power) to ‘CRISIL AA’ from ‘CRISIL AA-’ on the NCDs and long-term bank facilities.”
Also, the agency has revised the outlook on the company’s rating to ‘Stable’ from ‘Positive’, it added.
However, the rating on the company’s commercial paper programme has been reaffirmed at ‘CRISIL A1+’.
It further said that the rating upgrade has been driven by the deleveraging initiatives such as sale of non-core assets, i.e. South African wind asset and shipping business, and the preferential allotment of equity undertaken by the company.
Commenting on the development, Praveer Sinha, CEO & Managing Director, Tata Power, said “this rating upgrade recognizes the significant efforts of the company to strengthen the fundamentals.”
“The company is on course to achieve the deleveraging and restructuring of business as laid out in its long term strategy which will bring greater value for our stakeholders,” Sinha further said.
The company added that 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).
Buoyed by the development, shares of the company were trading at Rs 54.30 apiece, up 1.97 per cent, from the previous close on the exchange at 14:08 hours.
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