ICRA, in a recent report, reaffirmed positive rating on Tata Power and revised outlook to ‘positive’ from ‘stable’, citing improvement in its operating and financial performance across the generation and distribution businesses. The agency has assigned ‘[ICRA]AA (Positive)’ rating to the company’s non-convertible debentures (NCDs) worth ₹118 crore.

CARE Ratings also revised the outlook assigned to Tata Power’s NCDs and upgraded outlook to ‘positive’ from ‘stable’. The ratings factors in the improvement in overall leverage profile of the company on account of co-investor’s equity infusion in renewable business, higher profitability of the Mundra plant on account of extended period of operation under extraordinary provisions invoked by the Ministry of Power, it said in a report released on June 29, 2023.

CRISIL Ratings also assigned its 'CRISIL AA/Stable' rating to the non-convertible debentures of Tata Power and reaffirmed its 'CRISIL AA/Stable/CRISIL A1+' ratings on the bank facilities and existing debt instruments. The rating continues to reflect Tata Power's stable cash accrual from the regulated businesses, which account for about 40-45% of total EBITDA; the diversified business risk profile and strong financial flexibility, being a part of the Tata group. These strengths, however, are partially offset by losses in CGPL (now merged with Tata Power) on account of unviable project economics, and moderate debt protection metrics, it said in a report released on June 21, 2023.

Among others, India Ratings also affirmed the rating with stable outlook for the company’s debt securities.

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Tata Power Credit Rating

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