CARE withdraws rating assigned to bank facilities of JSW Energy JV Barmer Lignite Mining Company

28 Mar 2022 , 12:58 PM

CARE Ratings Limited (CARE) has withdrawn their rating assigned to the long-term and short-term bank facilities of Barmer Lignite Mining Company Limited, Joint Venture of JSW Energy Limited.

At around 1.02 pm, JSW Energy Ltd was trading at Rs296 per share down by Rs1.1 or 0.37% from its previous closing of Rs297.10 per share on the BSE.

“CARE has reaffirmed and withdrawn the outstanding ratings of ‘CARE BBB; Stable/CARE A3’ assigned to the bank facilities of Barmer Lignite Mining Company Ltd (BLMCL) with immediate effect. The above action has been taken at the request of BLMCL and ‘No Objection Certificate’ received from the lenders that have extended the facilities rated by CARE,” CARE Ratings said in a press release on their website.

It added, the rating factors in strength from well-established promoter groups with rich experience in mining business, extension of support from promoter group (i.e. JSW Energy Barmer Limited) towards business operations and firm offtake arrangement for entire output of mines providing favorable revenue visibility.

However, the rating strengths continue to be constrained by regulatory risk associated with mining operations, delay in finalization of final transfer price of lignite by the state electricity regulator of Rajasthan and moderate financial risk profile.