Tata Power's FY17 results in line with expectations: Moody's

Moody's Investors Service today said that Tata Power's results for the financial year ended March 2017 are in line with its expectations.

"The Tata Power Company Limited's (TPC, Ba3 negative) results for the fiscal year ending March 2017 (FY2017), are within Moody's expectations and continues to support its Corporate Family Rating of Ba3," it said in a statement.

Tata Power reported a consolidated net loss of Rs 246.9 crore in the quarter ended March 31, mainly due to a payment for "exceptional item" under a contractual obligation for DoCoMo share buy back.

"Based on Tata Power's FY2017 results, its credit metrics remain within the tolerance limits for its Ba3 ratings. For example, FFO interest coverage is around 1.8x compared to the tolerance range of 1.4-2x and debt/book capitalisation as at 31 March 2017 is approximately 73 per cent, which is within the tolerance range of 65-75 per cent," the statement said.
 

While these calculations do not reflect Moody's standard adjustments, Moody's Investors Service said it expects adjusted metrics to remain within rating expectation.