Fitch rates Tamil Nadu Electricity bonds A(ind)

Fitch Ratings said it assigned an expected rating of A(ind)(SO) to Tamil Nadu Electricity Board's Rs. 10 billion, including Rs. 5 billion green shoe option, long-term bond program and assigned final ratings of A(ind)(SO) to its Rs. 2 billion series 1 and Rs. 4 billion series 2 bond issuances. These bonds were issued in 2008-2009 under an Rs. 6 billion bond program.

The outlook is stable.

The ratings benefit from a credit substitution in the form of an unconditional and irrevocable guarantee from the Government of Tamil Nadu for bond servicing, the agency said, and from a structured payment mechanism overseen by the trustee.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.