Fitch rates Malana loans A-(ind)

Fitch Ratings said it assigned Malana Power Co. Ltd. a national long-term issuer rating of A-(ind), along with a national long-term rating of A-(ind) to its Rs. 986.7 million outstanding long-term bank loans. Fitch also said it affirmed the AAA(ind) rating on its Rs. 250 million secured non-convertible debenture program, based on an irrevocable and unconditional guarantee from Infrastructure Leasing & Financial Services Ltd., which has AAA(ind) and F1+(ind) ratings.

The outlook is stable.

The ratings reflect low demand risk stemming from a favorable demand and supply mismatch for power across India, Fitch said. The ratings also factor in the company's robust earnings, the agency said.

The ratings are constrained by the corporate guarantee extended by Malana to its 88%-owned subsidiary, AD Hydro Power Ltd., for an estimated Rs.10.4 billion in debt, Fitch said.

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