ICRA has revised the rating assigned to the Rs 700-crore Non-convertible Debenture (NCD) programme and Rs 425-crore long-term bank lines of PTC India Financial Services Ltd (PFS) from A+ to A.
The credit rating agency said the outlook on the long-term rating is ‘Stable’.
According to an ICRA statement, the revision in rating factors in continued vulnerability of some of the PFS’ funded exposures considering the current policy stance.
“The vulnerability is arising due to concern on gas/coal availability, lack of end-use power purchase agreements (PPAs) in some of the PFS’ funded projects, and higher counter party risk arising due to weak financials of state power utilities,’’ it said.
The revised ratings are supported by PFS’ parentage (60 per cent owned by PTC India Ltd) and its strategic fit in PTC’s operations. The ratings also factor in PFS’ good capital structure, diversified funding profile, experienced management team and adequate profitability.