CARE Ratings withdraws ratings on bank facilities of JSW Energy's arm

The rating withdrawal is at the request of Jaigad Power Transco and ‘NOC’ received from the lender that has extended the facility rated by CARE.

Sep 23, 2021 12:09 IST India Infoline News Service

CARE Ratings Limited (CARE) has withdrawn their ratings assigned to the Long Term and Short Term Banking facilities of JSW Energy Limited’s subsidiary Jaigad PowerTransco Limited.

“CARE has reviewed the ratings assigned to the long-term facilities at CARE A+; Stable as well as the short-term bank facilities at CARE A1+ and simultaneously withdrawn it, with immediate effect. The rating withdrawal is at the request of Jaigad Power Transco Limited (JPTL) and the ‘No Objection Certificate’ received from the lender that has extended the facility rated by CARE,” CARE Ratings shared on its website.

It added, the ratings continue to derive strength from well-established and experienced promoter group in power industry, relatively low business risk due to integrated nature of the transmission system with cost-plus tariff and favourable financial risk profile & debt coverage indicators.

However, the ratings continue to be constrained by counter party risk and regulatory risk related to tariff.

At around 12.15 pm, JSW Energy Ltd was trading at Rs338.50 per piece down by Rs1.2 or 0.35% from its previous closing of Rs339.70 per piece on the BSE.

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