Brickwork reaffirms ratings on JSW Energy's NCDs and Commercial Paper; Stock gains 1%

The Positive outlook is on account of the improvement in gross debt/Ebitda and net debt/Ebitda ratios in FY20/9MFY21.

Apr 07, 2021 10:04 IST India Infoline News Service

Brickwork Ratings (BWR) has reaffirmed the long-term rating at BWR AA- with Positive outlook for the proposed non-convertible debenture (NCD) issue of Rs2000cr and short-term rating at BWR A1+ for the commercial paper issue of Rs950cr of JSW Energy Limited.

Rationale report states that the ratings continue to factor in the strength of the promoter group, company’s long-term experience in the power sector, long-term power purchase agreements (PPAs) for ~82% of the company's consolidated total power generation capacity for the existing business profile and significant deleveraging over the past few years.

The Positive outlook is on account of the improvement in gross debt/Ebitda and net debt/Ebitda ratios in FY20/9MFY21, and the likely sustenance of the same, and profitability, as well as the receivables level, post factoring in the planned capex. Adherence to implementation timelines within budgeted costs for the proposed expansion and tying-up of PPAs as per committed timelines would be a key monitorable.

JSWEL was incorporated in 1994 and is the power utility arm of JSW Group. The promoter and promoter group companies had a total of 74.87% shareholding in the company at the end of December 2020.

JSW Energy was currently trading at Rs86.60 per piece up by Rs0.95 or 1.11% from its previous closing of Rs85.65 per piece on the BSE, at around 10:05 AM

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