(ADPnews) - Nov 9, 2010 - CRISIL rating agency on Tuesday lowered its rating on the bank facilities of Greenko Energies Pvt Ltd to C from BBB-/negative.
The agency issued the following press release:
Rs.14 Million Working Capital Demand Loan Limits C (Downgraded from BBB-/Negative)
Rs.100 Million Term Loan* C (Downgraded from BBB-/Negative)
* Includes proposed facility of Rs.0.9 million
CRISIL has downgraded its rating outlook on Greenko Energies Pvt Ltd’s (GEPL’s) bank facilities to ‘C’ from ‘BBB-/Negative’.
The downgrade reflects instances of delay by GEPL’s in repayment of its unrated term debt obligations over the past 3 months; this is despite ample liquidity following infusion of Rs.3.6 billion of equity in 2009-10 (refers to financial year, April 1 to March 31).
The rating also factors in GEPL’s large, consolidated presence in high-growth renewable energy sector and its diversified generation portfolio, imparting stability and visibility to revenues and its healthy financial risk profile aided by strong equity infusion from its parent. These strengths are partially offset by GEPL’s aggressive, debt-funded growth plans and implementation risks associated with the various projects in pipeline.
About the Company
GEPL was incorporated as Sri Balaji Biomass Power Pvt Ltd (Balaji) in July 2000 and the name was changed to GEPL in 2008. GEPL is a subsidiary of Greenko Group Plc (Greenko), based in the Isle of Man, and promoted by Mr. Anil Chalamalasetty and Mr. Mahesh Kolli. Greenko owns and operates renewable energy plants in India. Greenko owns and operates renewable energy plants in India, through GEPL, which is the holding and funding arm for all projects. As on September 2010, GEPL has eight biomass and seven hydroelectric plants, and one liquid-fuel-based plant in India, with a total operational capacity of 188.55 megawatts (MW). In addition, Greenko has a total licensed capacity of 502.60 MW which is planned to be operational by 2013-2014.
GEPL reported a provisional profit after tax (PAT) of Rs.2 million on net sales of Rs.286 million for 2009-10, against a PAT of Rs.21 million on net sales of Rs.223 million for 2008-09.
(INR 100 = USD 2.254/EUR 1.620)
Rating agency website: www.crisil.com
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