Global credit rating agency Standard & Poors' today kept the country's largest private power company Tata Power two notches below investment grade but said outlook is better because of expected progress of its projects.
Standard & Poors' retained BB- rating to the country's largest private power company Tata Power. BB- means less vulnerable in the near-term but faces major ongoing uncertainties to adverse business, financial and economic conditions.
Tata Power Company has been reaffirmed its corporate credit rating to BB- with a 'positive' outlook by Standard & Poors', the rating agency said in a statement.
The agency believes that the company's capital expenditure plans will remain significant and project completion risks of Maithon Power project in Jharkhand and the Mundra ultra mega power project in Gujarat is continuing although limited due to considerable progress.
Tata Power has an installed power generation capacity of about 3,000 MW at present.
It aims to add 60 per cent of its installed generation capacity by commissioning over 1,900 MW from multiple sources in 2011.