Moody's upgrades Tata Power's corporate family rating to Ba1, maintains stable outlook
Exciting news! Mint is now on WhatsApp Channels. Subscribe today by clicking the link and stay updated with the latest financial insights!" Click here! Tata Power's takeover of distribution companies in Odisha and the subsequent improvement in its operations, underpinned by declining electricity losses, have strengthened its business profile, the ratings agency said in the report.
The company's regulated distribution businesses will likely continue to generate core earnings and support its financial metrics at least over the next 1-2 years, it added. Tata Power's Ba1 rating benefits from a one-notch parental support uplift.
Moody's expects Tata Power to receive support from its major shareholder Tata Sons Ltd, if needed, evidenced by Tata Sons' ability to provide support and its track record of providing timely support to its investee companies, it said. Tata Sons' shareholding in Tata Power has increased to 45 per cent from 35 per cent after a preferential allotment of Tata Power's shares to Tata Sons in 2020.
Moody's expectation of parental support also reflects Tata Power's role in supporting the decarbonisation of the Tata group companies, according to the report. On Friday, shares of Tata Power settled 1.57 per cent higher at ₹262.20 apiece on the BSE."Exciting news! Mint is now on WhatsApp Channels
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