Tata Power receives upgraded ratings from CRISIL

Tata Power announced on Thursday that rating agency, CRISIL has upgraded its rating to ‘CRISIL AA’ from ‘CRISIL AA-‘ on the non-convertible debentures (NCD) and long-term bank facilities.

Tata Power announced on Thursday that rating agency, CRISIL has upgraded its rating to ‘CRISIL AA’ from ‘CRISIL AA-‘ on the non-convertible debentures (NCD) and long-term bank facilities.

Further the outlook has been revised to ‘Stable’ from ‘Positive’. The Mumbai based company’s commercial paper has been reaffirmed at CRISIL A1+.

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The company stated in its BSE regulatory filing, “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).”

Mr. Praveer Sinha, CEO & Managing Director, Tata Power, “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.”