`BB' rating for NTPC bond issue
Standard & Poor's Ratings
Services assigned its BB rating to National Thermal Power Corporation's proposed
senior unsecured $200 million bonds. Proceeds from the bonds are to be used to
fund NTPC's capital expenditure on expanding its electricity generation
facilities. According to Mr Sharad Jain, Standard & Poor's credit analyst: "The
main concern for NTPC's cash flow protection remains the financial weakness of
its customers — the SEUs in India. They consistently report operating losses and
often face cash flow difficulties, creating persistent and inordinate delays in
payment of their financial and contractual obligations."
Standard & Po.....