Fitch rates Tata Power loans BBB+(ind)/F2+(ind)

Fitch Ratings said it assigned Tata Power Trading Co. Ltd. a BBB+(ind) national long-term rating and a BBB+(ind)/F2+(ind) to its Rs. 175 million fund-based working capital bank facilities and ratings of BBB+(ind)/F2+(ind) to its Rs. 1.6 billion non fund-based working capital bank facilities.

The outlook is stable.

Ratings reflect the company's position as the fourth-largest power trader in India and the ability to maintain its market position in a highly fragmented power trading market, according to the agency.

Ratings are supported by revenue visibility by virtue of being the electricity trader of choice for existing Tata group companies, as well as for upcoming power projects of the Tata Group, the agency said.

Ratings also derive strength from its consistently low debt levels, and reasonably strong operational and financial linkages between the company and its parent TPC, Fitch noted.

Ratings are constrained by the relatively small size of operations in relation to its peers, low operating margins and price risk, the agency said.

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