...Capex Weighs on Ratings: Fitch Ratings expects large capex requirements at the Indian state utilities that we rate ¡ NTPC Limited (BBB-/Stable), NHPC Limited (BBB-/Stable) and Power Grid Corporation of India Ltd (GCIL; BBB-/Stable) ¡ in 2016, leading to sustained pressure on their credit metrics. However, we expect the ratings to be Stable for these entities and those of other rated Indian utilities. For the state-linked issuers, linkages with the sovereign provide a rating buffer. Discom Reforms Key: We see the debt relief package announced in November 2015 for financially distressed state electricity distribution companies (discoms) as a positive for the electricity sector. However, we believe commitment by the state governments towards addressing inefficiencies at the discoms is key to successfully addressing the issue. The package does not address tariff reforms directly ¡ a very politically sensitive subject in India. The central utilities ¡ PGCIL, NTPC and NHPC ¡ have benefitted from...
