Fitch affirms Chennai Water

Fitch Ratings said it affirmed Chennai Water Desalination Ltd.'s Rp. 3.78 billion senior project bank loans and Rp. 50 million performance security at national long-term Fitch BBB-(ind) and maintained a negative outlook.

The agency said the maintenance of a negative outlook reflects the fact that the plant's performance continues to be affected by periodic poor seawater intake quality and erratic electricity supply leading to lower than forecast revenues.

This means that Chennai Water remains reliant on financial support from its sponsors to meet debt service payments, the agency said.

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