ICRA Limited ('ICRA') has revised the long-term and short-term ratings of Sasan Power Limited ('Sasan'), 100% subsidiary of Reliance Power Ltd to '[ICRA] BB+ (Negative Outlook)' and '[ICRA] A4' respectively, attributing to deterioration in financial risk profile of Reliance Power Group and the uncertainty regarding regulatory approval of tariff matters relating to change in law during construction and forex variation.
The Company strongly disagrees with the revised ratings assigned by ICRA.
The 3,960 MW Sasan UMPP is operating at ~ 97% PLF for year to date in FY 2019-20 and continues to be the best performing power plant among such large sized power stations in the Country. 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. 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 substantial portion of its foreign currency debt.
Sasan has always been regular on debt service without taking any support from its parent Company since inception of the project. Further, Sasan has already received positive order from APTEL for tariff matters relating to Change in Law during construction.
The Company believes that ICRA has not appropriately factored in the above rating strengths while assigning the revised ratings.
Shares of RELIANCE POWER LTD. was last trading in BSE at Rs.4.01 as compared to the previous close of Rs. 4.61. The total number of shares traded during the day was 24945459 in over 93672 trades.
The stock hit an intraday high of Rs. 4.69 and intraday low of 3.95. The net turnover during the day was Rs. 103889825.