Fitch Affirms NTPC Ratings At 'BBB-' With Stable Outlook

Fitch Ratings has affirmed NTPC Ltd.'s long-term foreign- and local-currency issuer default ratings at 'BBB-', with a stable outlook. The agency also retained the 'BBB-' rating on NTPC's senior unsecured notes and its $6 billion medium-term note programme.

The ratings are capped by the credit profile of NTPC’s majority owner, the Indian government, which holds 51.1% in the company and is rated 'BBB-/Stable' under Fitch’s government-related entities criteria.

Fitch expects NTPC’s EBITDA net leverage to stay below the 5.0x ceiling for its standalone profile, aided by higher earnings as new assets come onstream and reduced working capital needs from more timely state utility payments.

The company’s capex is projected to rise to around ₹600 billion annually from 2025-26 to 2028-29, as NTPC accelerates its renewable energy additions and brownfield thermal expansion. While free cash flow is expected to turn negative due to capex and dividends, operational cash flows are seen remaining strong.

 Receivables are expected to stay under 75 days in the medium term, Fitch said.