CRISIL has reaffirmed its 'AA+/Positive' rating on the bonds issue of NHPC. The rating continues to reflect NHPC's majority ownership by Government of India (GoI: 85.96% stake in NHPC), healthy operating efficiencies and established market position in hydro power, stable cash flows because of regulated tariff policy, and ample liquidity. These rating strengths are partially offset by NHPC's large ongoing and planned capital expenditure (capex) and the weak credit risk profile of its customers.

CRISIL believes that NHPC's financial risk profile will continue to be supported by its strong liquidity and healthy net cash accruals. Moreover, its business risk profile will be supported by regulated nature of business and its efficient operations leading to its near full recovery of costs.

The rating may be upgraded if the company commissions its other large projects under implementation ahead of the committed deadlines, or if there is  significant traction in currently stalled projects such as Subansiri Lower, which will further improve the company's RoCE ratio or if there is significant improvement in pace of realisation of receivables. Conversely, the outlook may be revised to 'Stable' in case of further undue delay and/or cost overrun in commissioning of ongoing projects.  

Shares of the company declined Rs 0.3, or 1.56%, to settle  at  Rs 18.90.  The total volume of shares traded  was  550,063 at  the BSE (Tuesday).