Renewable options supplier Suzlon Energy on Wednesday stated Crisil upgraded its rankings by two notches to BBB+/A2 with a optimistic outlook.
“Suzlon Group as we speak introduced that Crisil has upgraded the rankings of Suzlon Energy Ltd. to CRISIL BBB+/A2 from ‘CRISIL BBB-/A3′ with a Positive Outlook for long-term and short-term facilities, reflecting the company’s strengthened financial position, operational excellence and favourable sectoral tailwinds,” a company statement said.
According to the statement, the rating upgrade is a result of Suzlon’s successful reduction of debt by repaying the entire term debt through the proceeds of a qualified institutional placement (QIP) of approximately ₹2,000 crore.
The reduction in fund-based borrowings, steady cash flows from the operations and maintenance (O&M) services business, and improved business profile in the wind turbine segment have contributed to this upgrade.
Suzlon Group Chief Financial Officer Himanshu Mody said, “This upgrade is a validation of our dedication to sound financial management, operational excellence, and sustainable expansion”.
By successfully repaying our term debt and improving our financial flexibility, we are better positioned to seize opportunities within the renewable energy sector and continue our growth journey, he added.
This two-notch long-term rating upgrade and a positive outlook of Crisil ratings largely indicate its expectations of continued achievement, given the company’s robust enterprise fundamentals and a beneficial market setting for the Indian wind vitality sector, it acknowledged.