Tata Power falls; Moody's cuts outlook
Moody's cited "material covenant breaches on bank debt" associated with Tata Power's Gujarat-based Mundra Ultra Mega Power Project.
July 02, 2013 / 17:34 IST
Shares in Tata Power fall 1.7 percent after ratings agency Moody's Investors Service changed its ratings outlook to "negative" from "stable."
Moody's cited "material covenant breaches on bank debt" associated with Tata Power's Gujarat-based Mundra Ultra Mega Power Project.Also Read: Tata Power consumers to pay 25% more tariffMoody's adds that the waivers from banks against the covenant breaches secured by the Tata Power unit in charge of the project expired on June 30.The Mundra Ultra Mega Power Project, an imported coal 4GW power project, is a significant investment for Tata Power as it increases its generation capacity by almost 50 percent, Moody's adds.Officials at Tata Power were not immediately reachable for comments. Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
