Credit rating agency, Fitch Ratings has affirmed ‘BBB-’ long-term issuer default rating (IDR) to state-owned Power Grid Corporation of India. The outlook on the issuer default rating is stable. Fitch evaluates the company’s standalone profile at ‘BBB’, which benefits from the cash flow certainty gained from the company’s dominant market position and regulated business model. The company has managed its counter-party risk well despite the weak financial position of many of its customers.
Power Grid Corporation of India (PGCIL) is an Indian state-owned electric utilities company headquartered in Gurgaon, India. Power Grid transmits about 50% of the total power generated in India on its transmission network.
