CARE upgrades long-term rating of Orient Electrics instruments worth Rs470 crore; stock zooms ~3%

6 Jul 2022 , 03:48 PM

Orient Electric Limited informed that CARE Ratings Limited upgraded the rating for its Long- term/Short- term bank facilities from ‘CARE AA-/CARE A1+’ to “CARE AA /CARE A1+. The outlook for these instruments has been kept as ‘Stable’.

While the rating agency has reaffirmed the short-term rating at ‘CARE A1+’.

Total bank facilities reviewed by the rating agency include Long- term/Short- term bank facilities worth Rs470 crore, and short-term facilities worth Rs103.30 crore.

Further, CARE Ratings Limited has withdrawn the rating assigned to the term loan facility of Orient Electric Limited as the company has repaid the aforementioned facility and there is no outstanding against the facility.

The revision in the long-term rating assigned to Orient Electric Limited (OEL) bank facilities takes into account the company's steadily growing scale of operations, diversification in product mix, and its strong financial risk profile, which includes consistently healthy return indicators, a comfortable capital structure, and strong debt coverage indicators and liquidity.

Orient Electric ended at Rs278.75 up by Rs8.4 or 3.11% from its previous closing of Rs270.35 on the BSE. The scrip touched intraday high and low of Rs282 and Rs270 respectively.