No change in APAC thermal projects’ ratings: Fitch
Fitch Ratings said that ratings for Asia Pacific (APAC) thermal power projects will remain unaffected by the coronavirus pandemic.
The ratings cover four thermal power projects in Asia, including Lalitpur Power Generation Company Ltd’s (LPGCL) super critical thermal power plant in Uttar Pradesh.
LPGCL is rated ‘BB+’ and stable. The others are Indonesian power producer Minejesa Capital BV and PT Lestari Banten Energi (LBE), both rated ‘BBB-’ with stable outlook. Vietnam-based Mong Duong Finance Holdings BV (MD2) is rated ‘BB’ with positive outlook.
Insulated from volatility
Fitch explained that these projects benefit from take-or-pay obligations under the long-term power purchase agreements, which insulate them from price volatility and demand shocks. A slowdown in economic activities due to the pandemic will soften power demand, but will not affect the capacity charges or fixed charges that these projects receive, it said.
