Fitch assigns expected BB+ rating to JSW Hydro Energy's proposed USD senior secured notes

According to the statement, the proposed notes will be issued directly by JSW Hydro to primarily repay its existing indebtedness on its two operational hydro projects the 1000MW Karcham Wangtoo KW on the Satluj River and 300 MW Baspa II B2 hydropower plants on the Baspa river, both located in Himachal Pradesh.The final rating is contingent upon the receipt by Fitch of final documents conforming to information already received, it added.

Fitch Ratings has assigned JSW Hydro Energy's proposed US-dollar senior secured notes an expected rating of 'BB+(EXP)' with a stable outlook.

''Fitch Ratings has assigned India-based JSW Hydro Energy Limited's proposed US-dollar senior secured notes due 2031 an expected rating of 'BB+(EXP)'. The Outlook is Stable,'' a Fitch Ratings statement said. According to the statement, the proposed notes will be issued directly by JSW Hydro to primarily repay its existing indebtedness on its two operational hydro projects; the 1000MW Karcham Wangtoo (KW) on the Satluj River and 300 MW Baspa II (B2) hydropower plants on the Baspa river, both located in Himachal Pradesh.

The final rating is contingent upon the receipt by Fitch of final documents conforming to information already received, it added. The rating reflects the credit quality of the portfolio of two hydropower projects, supported by KW's contracted revenue with PTC India Limited (PTC) and B2's contracted revenue with the Himachal Pradesh State Electricity Board Limited (HPSEBL), it stated. The rating is constrained at 'BB+' due to uncertainty around debt refinancing and the systemic risk stemming from the ultimate exposure to state-owned power distribution companies, even though the financial profile is better than the 'BBB-' threshold, it added.

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