International credit rating agency, Standard & Poor’s Ratings Services has assigned ‘BBB-’ long-term corporate credit rating to power transmission company PowerGrid Corporation of India (PGCIL) with a negative outlook. The rating agency has also assigned ‘BBB-’ issue rating to the company’s proposed issue of up to $1 billion unsecured long-dated notes. The rating on the notes is subject to review of the final issuance documentation.
The said ratings assigned to the company reflects its near monopoly in inter-state transmission business in India and a stable regulatory framework with a cost plus tariff mechanism on most existing projects.
PGCIL is India’s principal electric power transmission company. It owns and operates most of India’s interstate and inter-regional electric power transmission systems with inter-regional power transfer capacity of about 20,800 MW and wheels nearly 45% of total power generated across India.
