Summary: NTPC Ltd.
- ID: 1782860
- December 2010
- Standard & Poors
Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.
This product consists of a Summary Analysis: Bi-annual (at least). An abbreviated analysis containing Standard & Poor's issuer credit ratings as of the time the article was published. The analysis includes a rating rationale - the basis on which the rating was assigned - and an outlook section if the issuer is not on CreditWatch. Financial statistics are not included.
The rating on NTPC Ltd. reflects India's largest power company's dominant market position, cost-competitive operations, strong cash flow measures and liquidity, and a favorable regulatory environment. The company's aggressive capital expenditure plans, weak credit quality of customers, and the country and macroeconomic risk associated with India (BBB-/Stable/A-3) offset these strengths. The rating is below our assessment of NTPC's stand-alone credit profile of 'bbb' to reflect our expectation of potential negative intervention from the government if the sovereign comes under significant fiscal or external stress. The Indian government owned 84.5% of the company, as of Sept. 30, 2010. NTPC had an installed capacity of more than 32,694 megawatt (MW) (including about 3,364 MW through joint ventures) as of Oct. 27, 2010....
Companies mentioned in this report are: NTPC Ltd.
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