Credit rating agency, CARE has reaffirmed ‘BB+’ rating to Gayatri Projects’ Long-term Bank Facilities worth Rs 1,279.50 crore, which was enhanced from 1,202.94 crore, ‘A4+’ rating to Short-term Bank Facilities worth Rs 300 crore, which was enhanced from 275 crore and BB+/A4+’ rating to Long-term/Short term Facilities worth Rs 2,801 crore which was enhanced from 2,500 crore.
The ratings assigned to the bank facilities of GPL continue to be constrained by the high equity commitments, albeit reduction in the same, towards power and the BOT projects which have long gestation periods, high repayment obligations which in turn impact the liquidity profile of the company, increasing debt levels, high exposure in the form of contingent liabilities including Stand-by Corporate Guarantee to subsidiary, client concentration and working capital intensive nature of the business.
Gayatri Projects, an ISO 9001-2000 company, is one of the fastest growing construction companies in India executing major civil works including construction of concrete/masonry dams, earthen dams, national highways, bridges, canals, aqueducts, airports, ports, etc.
