Tata Power credit rating upgraded to BBB/Stable

S&P Global Ratings has upgraded The Tata Power Company Limited's credit rating to 'BBB/stable' from 'BBB-/Positive', following India's sovereign rating upgrade to 'BBB/A-2' from 'BBB-/A-3'.

The rating benefits from a three-notch uplift due to potential extraordinary support from Tata Sons Pte. Ltd., and removal of the sovereign rating constraint. The stable outlook reflects predictable regulated cash flow and renewable energy growth, targeting an FFO-to-debt ratio above 10% over the next two to three years.