Ind-Ra affirms CG Power issuer rating at 'AA-' with stable outlook

14 Feb 2022 , 09:31 AM

India Ratings and Research (lnd-Ra) has affirmed CG Power and Industrial Solutions Limited’s long-term issuer rating at IND AA-. The Outlook is Stable. Earlier, the company had informed about the upgrade in the company’s long-term issuer rating to IND AA- from IND D.

The rating on term loans Rs5.02 billion (reduced from Rs8.65 billion) has been affirmed at IND AA-/Stable. For Fund-based working capital limits, Rs5 billion IND AA-/Stable/IND A1+ rating has been affirmed.

The credit rating agency has also affirmed IND A1+ rating on non-fund-based working capital limits Rs18 billion. For commercial papers (CPs) Rs2.5 billion IND A1+ has been affirmed. On Derivative Limits Rs0.3 billion also IND A1+ has been affirmed.

At around 9.35 am, CG Power & Industrial Solutions Ltd was trading at Rs163.95 per share down by Rs7.3 or 4.26% from its previous closing of Rs171.25 per share on the BSE.

“To arrive at the ratings, Ind-Ra continues to apply the top-down approach according to its Parent and Subsidiary Rating Linkage criteria and has notched down the rating of CG Power’s from its parent, Tube Investments of India Limited (TIIL), as CG Power has strong legal and strategic, and moderate operational linkages with its parent. Ind-Ra continues to take a consolidated view of CG Power and its subsidiaries,” company said in a filing on Saturday.