Fitch Ratings has affirmed Power Grid Corporation of India long-term issuer default rating (IDR) at 'BBB-'. The Outlook is Stable. At the same time, the agency has affirmed Power Grid's senior unsecured rating and the ratings on its USD 500 million senior unsecured notes at 'BBB-'.

Regulated Revenues: POWERGRID's rating benefits from the regulatory nature of about 95% of its revenue, which has no offtake risks. The latest five-year regulatory tariff period extends to the financial year ending March 31, 2019 (FY19). The revenue from existing operational transmission assets is based on return on equity of 15.5%, and full pass-through of all the fixed costs that are within regulatory norms, including interest charges.

The company has no offtake risks as long as it meets the regulatory operational benchmarks - availability of 98% for alternating current systems and 95% for high voltage direct current systems. POWERGRID has maintained its availability for both systems at well over 99% over the years; in FY16, it was 99.72%.

Shares of the company gained Rs 1.7, or 0.97%, to trade at Rs 176.15. The total volume of shares traded was 22,402 at the BSE (12.43 p.m., Friday).