S&P: Power Grid, notes BBB-

Standard & Poor's said it assigned its BBB- long-term corporate credit rating to Power Grid Corp. of India Ltd. The outlook is negative.

At the same time, the agency said it assigned its BBB- issue rating to the company's proposed issue of up to $1 billion unsecured long-dated notes.

"The rating on Power Grid reflects the company's near monopoly inter-state transmission business in India and a stable regulatory framework with a cost plus tariff mechanism on most existing projects," said S&P credit analyst Abhishek Dangra in a news release.

"We also believe there is an extremely high likelihood of extraordinary government support to Power Grid in the event of financial distress. The weak credit quality of the company's customers and the country and macroeconomic risk associated with India offset these strengths."

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