Fitch rates Azure Power's proposed notes BB-plus

Singapore, August 9 : Fitch Ratings has assigned Azure Power Energy Ltd's (APEL's) proposed five-year partially amortising US-dollar senior secured notes due 2026 an expected rating of BB-plus.
The outlook is stable, it said. APEL is a subsidiary of Azure Power Global Ltd (APGL). The net proceeds will be used to refinance APEL's USD500 million notes due 2022.
Fitch said the proposed note rating reflects the credit profile of 16 entities that are indirectly owned by APGL, each of which houses an operating solar asset.
The operating entities together with APEL form the restricted group (Azure RG1). APEL is a secured holder of rupee-denominated debt issued by the operating entities in the restricted group.
The rating is underpinned by stable revenue stream generated by operating solar assets which have a total capacity of 611 MW and a capacity-weighted average record of five years.
The restricted group benefits from a diversified off-taker mix under fixed-price power purchase agreements with 34 per cent of capacity contracted with India's sovereign-owned Solar Energy Corporation of India (SECI) and NTPC Ltd.
The rest is contracted with 10 state-owned distribution companies.