Ind Ra affirms VA Tech Wabag's long-term issuer rating at 'A+/Stable'

Ind-Ra has taken a consolidated view of VATW and its subsidiaries and joint ventures.

Aug 31, 2021 09:08 IST India Infoline News Service

India Ratings and Research (Ind-Ra) has affirmed VA Tech Wabag Limited’s (VATW) Long-Term Issuer Rating at ‘IND A+’. The Outlook is Stable.

Ind-Ra has taken a consolidated view of VATW and its subsidiaries and joint ventures owing to the strong legal, operational and strategic linkages among them.

Also, the entities operate in a common line of business, and share a common management and brand name.

According to the Rationale report, total available liquidity/total outside liabilities rising above 20% for standalone operations, continued consolidated positive FCF (excluding growth capex), consolidated net finance coverage rising above 3.5x, all on a sustained basis, could lead to a rating upgrade.

On Tuesday early morning trade, VA Tech Wabag was trading at Rs336.10 per piece higher by 0.75% on the BSE.

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