TEXT-Fitch Assigns NTPC's USD500m Notes Final 'BBB-' Rating

Tue Sep 25, 2012 9:39pm EDT

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(The following was released by the rating agency)

MUMBAI, September 26 (Fitch) Fitch Ratings has assigned India-based energy company NTPC Limited's (NTPC, 'BBB'/Negative) 4.75% USD500m senior unsecured notes due 2022 a final rating of 'BBB-'. The notes are issued out of its USD2bn (upsized from USD1bn previously) medium-term note programme.

The assignment of the final rating follows a review of the final documentation materially conforming to the draft documentation previously received.

NTPC's ratings reflect its position as India's largest independent power generator. They also reflect its robust business model with low off-take risks, due to power deficit in the country and long-term power purchase agreements with state power utilities (SPUs) with pass through of reasonable costs and timely payment collections.

The ratings further benefit from NTPC's financial flexibility due to its strong cash flows, a large cash balance (INR161.5bn) and ability to access capital markets. NTPC's ratings are currently constrained by that of India ('BBB-'/ Negative) given the 84.5% government ownership.

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