Ind-Ra affirms Gujarat Gas' commercial paper ratings at ‘IND A1+'; stock skids ~5%

29 Apr 2022 , 01:39 PM

Gujarat Gas Limited informed that India Ratings and Research (Ind-Ra) has assigned ratings to Bank Loans and Commercial Papers of the company.

The rating agency has assigned ‘IND AA+/Positive rating to the company’s bank loans worth Rs32 crore. While Commercial Papers worth Rs0.35 crore are assigned ‘IND A1+’ rating by Ind-Ra.

Ind-Ra continues to take a standalone view of GGL while arriving at the ratings. This is because the agency does not expect GGL to extend/receive any financial support to/from its 54.17% parent, Gujarat State Petronet Limited (GSPL).

Ind-Ra has not factored into the ratings any linkages between GGL and GSPL, apart from GSPL being the promoter shareholder in GGL. In case GGL steps in to support GSPL in any tangible form, Ind-Ra will re-evaluate its rating approach.

The ratings reflect Ind-R& expectation of GGL’s business profile remaining strong, despite a likely drop in its profitability on account of high gas prices and volume contraction in the short term.

Gujarat Gas is currently trading at Rs488.35 down by Rs22.95 or 4.49% from its previous closing of Rs511.30 on the BSE. It has touched intraday high and low of Rs505 and Rs479 respectively.