Moody's lifts National Thermal Power from junk

Moody's Investors Service said it upgraded the foreign currency issuer rating of National Thermal Power Corp. to Baa3 from Ba2. The outlook is stable.

Moody's said the upgrade reflects the improved payment records of the State Electricity Boards, the track record of National Thermal Power in managing itself through the financial difficulties at the SEBs, the strong level of power demand evident in India and the company's leading position as a low cost producer in India's power industry.

Furthermore, Moody's notes that it has the sound ability to access domestic bank and capital markets and has a well-balanced debt maturity profile, which partially mitigates its negative free cash flow position in the next few years.

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