Fitch rates Meenakshi Energy loans BB+(ind)

Fitch Ratings said it assigned Meenakshi Energy Pvt Ltd.'s project bank loans of Rs. 10.05 billion a national long-term rating of BB+(ind).

The outlook is stable.

The rating is constrained by a lack of sponsor experience in the power sector, Fitch said.

The company is a relatively small player in the construction business, Fitch said, and its greenfield thermal power project represents a completely unrelated diversification.

Two factors that mitigate this risk include the presence of PTC India Financial Services Ltd. as an equity partner, as well as a fixed-price, fixed-time engineering, procurement and construction contract with Thermax India Ltd., the agency said.

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