Ind Ra revises outlook on Cochin Shipyard's bonds to 'Positive', affirms at 'AA+'

30 Mar 2022 , 01:06 PM

India Ratings and Research (Ind-Ra) has revised the Outlook on Cochin Shipyard Limited’s (CSL) bonds to Positive from Stable while affirming them at ‘IND AA+’ as follows:

Term ! Bond having issue size of Rs100 crore has been affrmed at IND AA+ and outlook revised to ‘Positive’ while Term II Bond having Rs23 crore issue size is also affirmed at IND AA+ with revised ‘Positive’ outlook.

Ind-Ra continues to classify CSL as a dependent public sector entity under its Rating of Public Sector Entities criteria, which is attributable to CSL’s strong strategic importance, and the ability and willingness of the sponsor’s (the government of India; GoI) to provide extraordinary support.

The Outlook revision to Positive reflects CSL’s steadily growing order book position and stronger operating margins, along with its continued strategic importance to the sovereign. The strengthening of linkage with the GoI and a sustained improvement in financial position would be key positive rating monitorables.

At around 1:09 PM, Cochin Shipyard was trading at Rs295.25 apiece up by Rs2.25 or 0.77% on the BSE.