Tata Power has informed on Friday that Moody’s Investors Service has upgraded the corporate family rating of Tata Power from Ba2 to Ba1 and has maintained the stable outlook.
Tata Power has informed on Friday that Moody’s Investors Service has upgraded the corporate family rating of Tata Power from Ba2 to Ba1 and has maintained the stable outlook. According to a report by Moody’s, the rating upgrade to Ba1 has been given due to the solid financial metrics of Tata Power. It has been said that the core business and financial profile of the company will remain stable for at least the next 12 to 18 months.
“Moody’s Investor Service has upgraded the corporate family rating of Tata Power Company Limited to Ba1 from Ba2 and maintained the stable outlook,” the BSE filing said. Moody’s said in a note that if the company’s standalone credit quality improves, it may upgrade Tata Power’s rating.
Company strengthened business profile
The note said Tata Power’s rating was upgraded by one notch based on the company’s standalone credit quality and shareholder support in Tata Sons. The note said Tata Power’s acquisition of distribution companies in Odisha and subsequent improvement in its operations due to reduction in power losses has strengthened its business profile. It said the company’s regulated distribution business will continue to generate core earnings and support its financial metrics for at least the next 1-2 years.
Tata Sons’ stake increased from 35% to 45%
Following the preferential allotment of Tata Power shares to Tata Sons in 2020, Tata Sons’ stake in Tata Power has increased from 35% to 45% and Moody’s expects the parent to contribute significantly to Tata Power’s decarbonisation drive in line with other Tata Group companies. The support will help. Company shares on the last day of the week 262.40 Closed at Rs.