Moody’s applies Baa3 to NTPC note program

Moody's Investors Service said it assigned a provisional Baa3 rating to NTPC Ltd.'s $4 billion medium-term note program.

Any notes issued under the program will rank pari passu with all other senior unsecured debt issued by the company.

The provisional rating assigned is in line with NTPC's existing Baa3 issuer rating.

Moody’s said the Baa3 rating reflects NTPC's baseline credit assessment (BCA) of baa3. The rating does not factor in any uplift from the Indian government due to the high baa3 BCA relative to the Baa3 sovereign rating.

Nevertheless, the agency said it believes that the Indian government will provide strong support in the event that extraordinary financial support is required, particularly in light of its about 70% ownership of the company.

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