S&P rates NTPC notes BBB-

S&P said it assigned a BBB- long-term issue rating to NTPC Ltd.'s proposed drawdown under its $4 billion senior unsecured medium-term notes program.

The agency said it expects India's transparent regulatory environment for power and NTPC's strong market position and increasing generation capacity to support the company's business risk profile.

Execution risk, increasing leverage and the weak credit quality of NTPC's major customers – state electricity utilities – offset these strengths, S&P said.

The stable outlook considers an expectation that the company's ratio of funds from operations-to-debt will remain higher than 9% over the next 12- to 24-months, the agency said.

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