Fitch assigns 'F1+(ind)' rating to Tata Projects' CP prog

New Delhi, Dec 26 (UNI) Fitch ratings today assigned 'F1+(ind)' national rating to Tata Projects Ltd's (TPL) proposed Rs 30 crore commercial paper programme (CP).

The CP issue will be used primarily to finance the company's increased working capital requirements on the back of substantial new contracts. The CP will be carved out of the company's funded working capital limits.

The rating reflects the company's role as an engineering, procurement and construction (EPC) contractor that caters to the Indian power sector, its strong order book position with adequate cash flows for the medium term and a conscious strategy to derisk the cyclicality associated with an order-driven business.

It also takes into account the strength of the company's shareholders, who are all a part of the Tata group -- one of India's largest corporate houses, and its strong business linkages with its key shareholder Tata Power Company Ltd (TPCL).

Fitch also affirmed TPL's National Long-term Issuer rating and its rating on the Rs 33.75 crore debt portion of TPL's Rs 100 crore partly convertible debenture issue (PCD) at 'AA-(ind)' (AA minus(ind)).

TPL's primary business is in executing contracts for the Indian power sector, which accounted for 85 per cent of its revenues and 76 per cent of its segment profits (excluding un-allocable overheads) in FY06.

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