Tata Power Default Risk Tumbles on Coal Control: India Credit
This article is for subscribers only.
Debt of Tata Power Ltd., India’s biggest non-government electricity producer, is viewed by traders as the safest in four months after purchases of Indonesian mine stakes increased its control over coal prices.
Traders are paying 299 basis points annually to insure the debt of Mumbai-based Tata Power, down from 641 basis points on Nov. 23. That’s the largest decline among the eight Indian companies with credit-default swaps for the period, according to CMA prices. Contracts on Essen, Germany-based power producer RWE AG was little changed at 71 and those for Charlotte, North Carolina-based Duke Energy Corp. slid 10 to 37.