Fitch rates Noida Power loans A-

Fitch Ratings said it assigned Noida Power Co. Ltd. a national long-term rating of A-(ind), along with a national long-term rating of A-(ind) on its bank loans aggregating Rs.474.4 million, A-(ind)/F2+(ind) on its Rs.400 million fund-based working capital limits and A-(ind)/F2+(ind) on its Rs.50 million non-fund-based working capital limits.

The outlook is stable.

The ratings reflect low level of business risk in the electricity distribution business due to a cost-plus regulatory framework, Fitch said. The ratings also draw strength from the high efficiency of the company's operations, reflected in a high collection efficiency rate of 99% and low distribution loss of 8.03% in the fiscal year that ended in March 2008.

The company's monopoly status and high entry barriers in electricity distribution also are factored into the ratings, Fitch said.

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