OREANDA-NEWS. June 1, 2011. Tata Power, India’s largest integrated private power utility, today, announced that the rating agency Crisil has assigned ‘AA/Positive’ rating to its issue of Rs1,500 crore unsecured, listed, subordinated, perpetual debentures. Perpetual debentures, a kind of hybrid instrument, combines features of both debt and equity. Crisil has accorded 50 per cent equity content to this instrument. It implies that Crisil, in its analysis of Tata Power’s capital structure and financial ratios, will treat 50 per cent of the principal amount as equity and the other half as debt. Crisil has also reaffirmed its ratings on the company’s existing debt instruments and bank facilities at ‘AA/Positive/P1+’.

Recently, ICRA had reaffirmed LAA and A1+ ratings assigned for Tata Power’s non-convertible debenture (NCD) programme of Rs2,600 crore and commercial paper / short-term debt programme of Rs500 crore, respectively. The long-term rating carries a positive outlook.