Fitch rates Ideal Energy loans BB+(ind)

Fitch Ratings said it assigned a national long-term rating to Ideal Energy Projects Ltd.'s project bank loans of Rs. 11.07 billion at BB+(ind).

The outlook is stable.

Being a merchant power plant, the company's rating is constrained by the project completion and off-take risks, Fitch said, and also the uncertainty surrounding the sponsor's equity infusion.

On the other hand, India's chronic power shortage, which will not likely be resolved in the medium-term, lends strength to the rating, the agency said.

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