Fitch rates Delhi Transco bond, loans A+(ind)

Fitch Ratings said it assigned Delhi Transco Ltd. a national long-term rating of A+(ind), along with A+ (ind) ratings to its Rs. 2 billion bond issue and Rs. 4.5 billion sanctioned long-term bank loans and a rating of A+(ind)/F1(ind) to the its Rs. 450 million non-fund based working capital bank facility.

The outlook is stable.

The ratings reflect the company's strong operational, financial and strategic linkages with the government of National Capital Territory of Delhi, Fitch said, and its position as a key vehicle in furthering the social and infrastructural obligations in Delhi's power sector.

The ratings also incorporate the stable and transparent regulatory process in determining its tariff on a multi-year basis, which assures recovery of all fixed costs including a 12.25% post-tax return on capital employed, the agency said.

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