CARE reaffirms stable outlook credit rating of 'A-' for Jindal Power

CARE Ratings has reaffirmed stable outlook credit rating for Jindal Power, a subsidiary of Jindal Steel and Power Ltd (JSPL).

"CARE has reaffirmed stable outlook credit rating of A- (Single A minus) to Jindal Power which operates the 3400 MW OP Jindal Super Thermal Power Plant at Tamnar, Chhattisgarh," JSPL said in a statement Friday.

According to information on CARE Rating website, instruments with CARE A rating are considered to have an adequate degree of safety regarding timely servicing of financial obligations.

Such instruments carry low credit risk, while the modifier (-) reflects comparative standing within the category.

The 'stable' outlook indicates expected stability (or retention) of the credit ratings in the medium term.

JSPL further said the reaffirmation of the rating was amid cost competitiveness of the company's power plants and their favourable location leading to competitive variable cost.

"The ratings also derive comfort from revenue visibility from medium/long term PPAs (power purchase agreements) in place for its capacity and demonstrated the ability of the company to enter into short-term PPAs and undertake merchant sales at remunerative tariffs," it added.

(With inputs from agencies.)