NTPC Ltd.

Global rating agency, Fitch Ratings has assigned ‘BBB-’ rating to state-run NTPC’s proposed $2 billion medium-term note programme. The rating of BBB- is considered secure by Fitch.

The notes will constitute direct, unconditional, unsubordinated and unsecured obligations of NTPC. The final rating is contingent upon the receipt of final documents conforming to information already received. Fitch assesses that the linkages between NTPC and the sovereign are moderate, with strategic linkages being especially strong.

NTPC’s rating benefit from stable operational cash flows due to the favourable regulatory framework. The company has long-term power purchase agreements (PPAs) for all its plants that allow for the pass-through of fixed costs as well as fuel costs.

NTPC is the largest power generating company in the country. It has also diversified into hydro power, coal mining, power equipment manufacturing, oil & gas exploration, power trading & distribution.