TPC's short

New Delhi, Oct 18 (UNI) Credit rating agency ICRA has reaffirmed the 'LAAA' ratings for the Rs 1,000 crore long-term debenture (LBT) programme and the Rs 500 crore LBT programme of Tata Power Company Ltd (TPC).

The rating is the highest-credit-quality rating assigned by ICRA, signifying that the rated instrument carries the lowest credit risk.

The rating for the Rs 500 crore commercial paper programme has been retained at A1+, which is the highest-credit-quality rating assigned by the rating agency to short-term debt instruments.

''The rating reflects the stable cash flow 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,'' ICRA said in a written communication.

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

TPC is India's largest private sector power utility with an installed generation capacity of over 2300 MW and has a presence in all the segments of the power sector viz generation (thermal, hydro, solar and wind), transmission and distribution.

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