Tata Power Company Ltd.

CARE has assigned its ‘AA’ rating to the Non Convertible Debentures of The Tata Power Company (Tata Power). The rating on Tata Power continues to reflect company’s strong business position as an integrated power company. Tata power has a significant presence in generation, transmission and distribution of power. Its cash flows from core licensed operations are stable due to the regulated nature of the business.

Significant portion of Tata Power’s generation capacity of 6,899 MW (as on October 30, 2012) is operated either on a cost plus basis or on a captive basis with strong counterparties which translates in stable earnings visibility and limits the risk faced by the company due to volatility in fuel prices.

Tata Power is an integrated power utility company and one of the major companies of the Tata Group. As on October 30, 2012, Tata Power had 6,899 MW of installed generation capacity. In addition, Tata Power also has a strategic investment in coal assets through a 30% stake in Indonesian thermal coal companies - PT Kaltim Prima Coal and PT Arutmin.