Fitch rates AD Hydro Power loans BBB(ind)

Fitch Ratings said it assigned AD Hydro Power Ltd. a national long-term issuer rating of BBB(ind), along with BBB(ind) national long-term ratings to its sanctioned Rs. 7.82 billion long-term bank loans and proposed Rs. 2.58 billion long-term debt program.

The outlook is stable.

The ratings reflect management's experience in implementing hydro-power projects on the Himalayan terrain, Fitch said. They also take into account the support from sponsor, Malana Power Co. Ltd. (rated A- (ind) with stable view), for the construction of a 192-megawatt merchant hydro-power project, the agency said.

The ratings are also supported by the corporate guarantee for debt obligations provided by Malana, Fitch said, along with a debt service reserve account arrangement with a bank.

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