S&P affirms National Thermal Power

Standard & Poor's said it affirmed its BB+ long-term foreign and local currency corporate credit ratings for India's National Thermal Power Corp. Ltd.

The outlook is stable.

The ratings reflect the company's financially weak customers, as National Thermal often faces cash flow difficulties and a significant build-up of receivables. Although new collection mechanisms have recently alleviated the short-term collection risk, S&P said the long-term sustainability of the improvement is uncertain.

S&P said this weakness is partly offset by the company's dominant market share as India's largest electricity generator, its lack of any significant competitive pressure, a diversified generation portfolio and an adequate financial profile.

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