Fitch rates Jaiprakash Hydro-Power loans to A(ind)

Fitch Ratings said it upgraded Jaiprakash Hydro-Power Ltd.'s national long-term issuer rating to A(ind) from A-(ind), along with its national rating assigned to its Rs. 1.74 billion non-convertible debenture program to A(ind) from A-(ind). Fitch also assigned an A(ind) rating to its Rs. 7.79 billion long-term bank loans and an F1(ind) rating to its Rs. 125 million short-term bank loans.

The outlook is now stable.

The upgrade reflects the reduction in price risk following the articulation of the basis for tariff fixing, Fitch said, as well as the first time determination of tariff by the state electricity regulator, Himachal Pradesh Electricity Regulatory Commission.

The ratings also factor in the financial closure of the issuer's subsidiary, Jaypee Powergrid Ltd. without recourse to the issuer, the agency said.

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