CARE assigns ‘A-‘ rating to Suzlon Global Services
Renewable energy firm Suzlon Group today said its arm Suzlon Global Services (SGSL) has received provisional credit rating of ‘A-‘ with stable outlook from CARE. “The rating has been assigned for its proposed long term and short term bank facilities. CARE ‘A’ ratings are considered to have adequate degree of safety regarding timely servicing of financial obligations, carrying low credit risk,” it said in a BSE filing. According to the statement, the proposed long term and short term bank facilities of around Rs 1,600 crore include Rs 1,350 crore term loan, and working capital facility of Rs 100 crore.
The proposed facility will be primarily used to repay the debt at the group level to optimise the overall debt structure and interest cost, it said. SGSL currently has a tubular tower division and operation, maintenance and services division (OMS division). The company is in the process of demerging its tubular tower division and merging the same with Suzlon Energy Limited (SEL), its parent company. Post this re-organisation, only the OMS division will remain under SGSL, it added. “The A’ category credit rating is a testament of our efforts towards achieving a sustainable turnaround along with a controlled risk environment and increased cost consciousness,” Group Chief Financial Officer Kirti Vagadia said. The name of the company was changed from Suzlon Structures Ltd to Suzlon Global Services Ltd with effect from January 23, 2017.