ICRA retains LAAA to Rs1000cr LTD prog of TPC

New Delhi, Oct 11 (UNI) Credit rating agency ICRA today retained its LAAA ratings for the Rs 1,000 crore Long-Term Debenture Programme and the Rs 500 crore Long-Term Debenture Programme of Tata Power Company Ltd (TPC).

The rated instrument carries the lowest credit risk.

The rating for the company's Rs 500 crore Short Term Debt Programme has been retained at A1+, which is the highest-credit-quality rating assigned by ICRA to short-term debt instruments.

The rating reflects the stable cash flows from its licensee business characterised by steady demand growth and a favourable cost-plus-rate-of-return regulatory regime, the company's strong financial position and reducing vulnerability to competitive pressures in the medium term, given the prevailing energy deficiency in the western region and transmission capacity constraints.

The rating continues to factor in the company's favourable hydel:thermal mix, its superior operating efficiency, low level of T&D losses and the favourable financial flexibility arising from conservative capitalisation, a large portfolio of liquid investments and its status as a Tata group company.

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