Gujarat Gas gets ‘CARE AA+' rating on bank facilities worth Rs3,000 crore; stock jumps ~2.5%

8 Apr 2022 , 01:52 PM

Gujarat Gas Limited informed that CARE Ratings Limited has reaffirmed the credit rating assigned to the company’s long-term and short-term bank facilities worth Rs3,000 crore.

The rating agency has reaffirmed the ‘CARE AA+’ rating on the company’s long-term bank facilities with a positive outlook on the same. While short-term bank facilities’ rating was reaffirmed at ‘CARE A1+’.

The positive outlook on the long-term rating of GGL reflects that CARE expects further growth in GGL's scale of operations along with improvement in its leverage and debt coverage indicators. The outlook may be revised to 'Stable' if Green Gas contracts any additional large debt or if it encounters significant delays while implementing its project in the new GAs leading to deterioration in its overall gearing.

The ratings assigned to the bank facilities of Gujarat Gas Limited (GGL) continue to derive strength from GGL's leading position in the city gas distribution (CGD) business in India, established gas-sourcing arrangements, significantly large scale of operations, and moderately diversified customer segment mix.

Gujarat Gas is currently trading at Rs530 up by Rs12.55 or 2.43% from its previous closing of Rs517.45 on the BSE. Its scrip touched intraday high and low of Rs532 and Rs518.20 respectively.