Fitch: NTPC notes BBB-(emr)

Fitch Ratings said it assigned a long-term local-currency issuer default rating of BBB- with a stable outlook to NTPC Ltd.

The agency also said it assigned an expected rating of BBB-(emr) to NTPC's proposed senior unsecured rupee-denominated notes.

The notes, which are considered green, will be issued out of NTPC's $4 billion medium-term note program, Fitch said.

While the notes are denominated in rupees, both coupon payments and principal on maturity are settled in U.S. dollars at the prevailing rupee-dollar exchange rate, the agency noted.

As such, settlements are subject to transfer and convertibility risk on exchange operations involving the Indian rupee so the rating on the notes can be no higher than India's country ceiling of BBB-, Fitch said.

The notes are rated at the same level as NTPC's senior unsecured debt rating as they constitute direct, unconditional, unsubordinated and unsecured obligations, the agency said.

The ratings reflect the company’s role as the largest power generation company in India, Fitch said.

The ratings benefit from its stable operational cash flows due to the favorable regulatory framework, the agency said.

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