Moody's, Fitch assign stable outlook to JSW Hydro's proposed senior notes
May 06, 2021
Singapore, May 6 : Moody's Investors Service has assigned a provisional Ba1 rating to the proposed 10-year USD senior secured notes to be issued by JSW Hydro Energy Ltd.
It said the outlook is stable.
JSWH owns and operates two run-of-river hydropower projects -- the 300-megawatt Baspa II plant and the 1,000 MW Karcham Wangtoo plant in Himachal Pradesh.
The company will use the proceeds from USD notes to repay its outstanding external debt.
Meanwhile, Fitch Ratings has assigned an expected rating of BB-plus with stable outlook.
It said the rating reflects credit quality of the two hydro power projects, supported by Karcham Wangtoo's contracted revenue with PTC India Ltd and Baspa II's contracted revenue with Himachal Pradesh State Electricity Board.
However, Fitch said the rating is constrained at BB-plus due to uncertainty around debt refinancing and systemic risk stemming from ultimate exposure to state-owned power-distribution companies, even though the financial profile is better than BBB-minus threshold.
