Chennai: Tata Power said domestic credit rating agency Crisil has revised its outlook on the company to ‘positive’ from “stable”.
Clearing off of all dues on debentures worth Rs 1,082 crore and a term loan of Rs 605 crore helped in the revision of the outlook, the company said.
In the rating agency’s note shared by the company, it gave out two more reasons for upping the outlook. It said there will be an improvement in Tata Power’s credit risk profile on implementation of the high power committee (HPC) recommendations for its subsidiary Coastal Gujarat (CGPL) and also continued deleveraging through sale of non-core assets such as the strategic engineering division (SED).
The agency said the HPC recommended sharing the losses incurred in CGPL between consumers, lenders, and developers in October 2018. After this, the Supreme Court ruled that power purchase agreements (PPAs) could be amended with distribution companies subject to Central Electricity Regulatory Commission’s (CERC) approval, it said.