Fitch rates Gridco loans BBB-(ind)

Fitch Ratings said it assigned Gridco Ltd. a national long-term rating of BBB-(ind), along with a BBB-(ind) rating to its bank term loans amounting to Rs.3.72 billion and BBB-(ind)/F3(ind) ratings to its fund-based and non-fund based working capital facilities amounting to Rs.3 billion.

The outlook is stable.

The ratings reflect its strong operational, financial and strategic linkages with the government of Orissa and its position as a key government vehicle in furthering the social and infrastructural obligations of the company in the power sector, Fitch said.

The ratings incorporate the low levels of business risk, arising out of high entry barriers, and its status as the designated bulk supplier and nodal agency for power procurement operations in Orissa, the agency said.

Rating concerns include enhanced regulatory risk, Fitch said.

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