Torrent Power Limited announced that India Ratings and Research has assigned a long-term credit rating of 'IND AA+/Stable' to the company's proposed non-convertible debentures (NCDs) amounting to ₹2000 Crore. The rating agency also reaffirmed its 'IND AA+/Stable' rating on existing NCDs worth ₹1875 Crore and affirmed the 'IND A1+' rating on the company's short-term commercial paper. The rating rationale highlights Torrent Power's regulated cost-plus model in its distribution and generation businesses, strong operating performance in distribution areas, and healthy credit metrics with declining net leverage. The company's diversified under-construction portfolio, including renewable energy projects, a pumped storage plant, and a coal-based thermal power plant, was also considered. India Ratings estimates Torrent Power will undertake significant capex of INR650 billion -700 billion until FY31- FY32, funded through a debt-equity mix of 75:25. The agency noted that the company's EBITDA generation is supported by the regulated nature of its operations, with the transmission and distribution segment contributing significantly to overall EBITDA. The company's liquidity is supported by healthy cash and cash equivalents and working capital limits, with improved cash flow from operations.
