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 are to be issued out of its $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 the direct, unconditional, unsubordinated and unsecured obligations of NTPC, Fitch said.

The company has a dominant market position as the largest power generation company in India with 16% of the country's total installed power generation capacity, the agency explained.

The ratings are supported by the company’s stable cash flows due to a favorable regulatory framework, Fitch said.

The ratings also benefit from long-term power purchase agreements (PPAs) for all of its plants, which allow for the pass-through of fixed costs and fuel costs, the agency added.

The ratings also consider its well-managed counterparty risks despite most of NTPC's customers being state utilities with weak financial profiles, Fitch said.

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