Fitch affirms Malana Power, ups view to stable

Fitch Ratings said it revised the outlook on Malana Power Co. Ltd.'s national long-term rating to stable from negative and affirmed the rating at A-(ind).

The agency also said it affirmed the rating on its Rs. 2.6 billion long-term bank loans, reduced from Rs. 3.59 billion, at A-(ind) and the rating on its Rs. 250 million secured non-convertible debenture program at AAA(ind)(SO).

The program is backed by an unconditional and irrevocable guarantee from Infrastructure Leasing & Financial Services Ltd., Fitch said.

The outlook revision reflects the part-commissioning of AD Hydro Power Ltd., the company's 88%-owned subsidiary, the agency said, and the perception of Malana's reduced financial support to AD Hydro Power in the near term.

The company's ratings continue to factor in the reasonably strong operating performance of its power plant, although Fitch noted that reduction in hydrology led to a decline in its revenues and profitability in 2010.

© 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.