Credit rating agency, CRISIL has downgraded its rating on the long-term bank facilities and debt instruments of Tata Power Company to ‘AA-/Negative’ from ‘AA/Negative’. The rating agency has also reaffirmed its rating on the company’s short-term facilities at ‘A1+’.
The company has received the rating downgrade as its risk profile has been adversely impacted on account of lower-than-expected dividends from the coal companies; the dividends have not been enough to offset the debt servicing requirements of Tata Power’s special purpose vehicle (SPV), Coastal Gujarat Power.
Tata Power is India's largest integrated power company with a significant international presence. The Company has an installed generation capacity of 8521 MW in India and a presence in all the segments of the power sector viz. Generation (thermal, hydro, solar and wind), Transmission, Distribution and Trading.
