Moody's rates NHPC Baa3

Moody's Investors Service said it assigned a Baa3 issuer rating to NHPC Ltd.

The outlook is positive.

NHPC's Baa3 rating reflects its baseline credit assessment of Baa3.

The ratings does not factor in any uplift from the government due to the high baa3 baseline credit assessments relative to government of India's Baa3 sovereign rating, Moody's said.

The agency said it expects that the Indian government will provide strong support in the event that extraordinary financial support is required, particularly in light of its 74.5% ownership of NHPC.

NHPC's standalone credit strength reflects its strong competitive position, favorable regulatory environment for power sector in India, strong financial profile and ongoing government support, Moody's said.

The company's rating also incorporates the implementation risk associated with the company's capital expenditure program, the agency said.

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