A Moody’s Investors Service-ICRA report on Thursday upgraded the outlook for the Indian power sector to “stable” over the next 12-18 months with a Baa3 positive rating, saying it reflects sustained improvement in domestic coal availability.
“In fact, we changed the outlook for the Indian power sector to stable from negative, because the increased domestic production of coal will ease constraints on fuel supply,” Abhishek Tyagi, a Moody’s Vice President, said in a statement.
The Baa3 rating indicates moderate credit risk.
The American rating agency also said that the Indian government’s ‘Ujwal Discom Assurance Yojana’ (Uday) debt restructuring scheme for distressed discoms being implemented by 21 states so far will likely improve their financial capacity to make timely payments to power generators. Read More…