Fitch ups Tata Power view to positive

Fitch Ratings said it affirmed Tata Power Trading Co. Ltd.'s national long-term rating at BBB+(ind), along with the ratings on its Rs. 1.6 billion non-fund based working capital bank facilities and its Rs. 250 million fund-based working capital bank facilities, enhanced from Rs. 175 million, at BBB+(ind)/F2+(ind). The entire fund-based facility forms a sublimit of the overall non-fund based facility.

The outlook has been revised to positive from stable.

The outlook revision reflects the company's strong growth in volumes and revenues in 2009 and 2010 in India's buoyant power-trading market, which is growing at more than 30% year-over-year, Fitch said.

The ratings also incorporate the potential for margin accretion following an increase in the regulatory cap on trading margins, the agency said, and the low off-take risks given the large power deficits across the country.

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