S&P moves NHPC view to stable

S&P said it revised its outlook for NHPC Ltd. to stable from negative and affirmed its BBB- issuer rating.

“We revised the outlook reflecting reducing working capital drag for NHPC, given its stabilizing receivables position. S&P Global Ratings believes working capital requirements for the Indian hydro and renewable power generator and seller are now more manageable. NHPC's receivables position has been improving with better collection of overdue receivables from electricity distribution companies (discoms),” the agency said in a press release.

Additionally, S&P warned, “We may lower the rating on NHPC if the company's FFO-to-debt ratio remains below 15% for a sustained period, with little likelihood of FFO to debt recovering to above 15%, and if the ratio of operating cash flow (OCF)-to-debt falls below 13%.”

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