Credit rating agency, Credit Analysis & Research (CARE) has revised rating of Gujarat Industries Power Company’s long term bank facilities worth Rs 753.30 crore to ‘AA-‘from ‘A+’. The rating agency has revised rating of company’s Long-term/Short-term Bank Facilities worth Rs 100 crore from ‘A+/ A1+’ to ‘AA-/ A1+’. Furthermore, the rating agency has also reaffirmed ‘A1+’ rating to the company’s short-term bank facilities worth Rs 22.72 crore
The revision in the long-term rating assigned to the bank facilities of Gujarat Industries Power Company (GIPCL) takes into account consistent improvement in the leverage and debt protection indicators over past four years ended March 31, 2015 due to established operations of lignite based power plants under cost plus tariff structure of long-term power purchase agreement and absence of major debt funded capital expenditure.
GIPCL is a Vadodara-based public limited company engaged in the business of power generation with an installed capacity of 815 MW as on March 31, 2015. The company operates two gas based power plants in Vadodara, VS-I and VS-II aggregating 310 MW and two lignite-based power plants in Surat, SLPP-I and SLPP-II aggregating 500 MW.
