Fitch rates NTPC notes BBB-

Fitch Ratings said it assigned an expected rating of BBB- to NTPC Ltd.’s proposed senior unsecured notes.

The notes will be issued from the company’s $4 billion medium-term note program.

The notes are rated at the same level as NTPC’s senior unsecured debt rating as they will constitute direct, unconditional, unsubordinated and unsecured obligations of NTPC, Fitch said.

The rating reflects the company’s position as the largest power generation company in India, accounting for a fourth of total power generated in the country, the agency said.

The ratings benefit from stable operational cash flows due to the favorable regulatory framework, Fitch said.

The company has long-term power purchase agreements for all its plants, which allow for the pass-through of fixed costs and fuel costs, the agency said.

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