Reliance Power not agree with CARE ratings of 'BBB+' on Sasan Power Ltd

Reliance Power Saturday said it does not agree with the CARE Ratings of 'BBB+' given to its subsidiary Sasan Power Limited.

CARE Ratings has revised the long-term and short-term ratings of Sasan Power Ltd to 'CARE BBB+ (Stable Outlook)' and 'CARE A2', respectively, attributing inter-alia to steep depreciation in the rupee against US dollar, which will expose Sasan to higher interest outgo on the unhedged portion of foreign currency debt, the company said in a regulatory filing to exchanges.

"The company strongly disagrees with the revised ratings assigned by CARE," it said.

The 3,960 MW Sasan UMPP is operating at 92 per cent Plant Load Factor and continues to be the best performing power plant among such large-sized power stations in the country, it said.

The power plant performance is strongly supported by optimal and efficient operating performance of its captive coal mines, which deploy most modern & productive equipment and are the largest coal mines by volume handled in the country, the company said.

"With its competitive tariff, Sasan is placed on the top of Merit Order Dispatch (MOD) stack and has an excellent track-record of collections from Procurers. Sasan has hedged the substantial portion of its foreign currency debt," it said.

(With inputs from agencies.)