MUMBAI, February 5: Bharat Heavy Electricals Ltd (Bhel) plans to raise Rs 500 crore as short-term debt. The Credit Rating Information Services of India Ltd (Crisil) has assigned a P1+ rating to the company's debt programme, indicating that the degree of safety with respect to timely payment on the instrument is very strong.The rating reflects BHEL's well-diversified product range and a successful entry into the industrial capital goods segment. Bhel also has a comfortable order-book position, favourable capital structure, strong interest coverage and low gearing ratios resulting in high financial flexibility.
however, the positive factors are partly offset by the weak finances of state electricity boards which are among BHEL's major customers and limited ability of BHEL to offer suppliers credit which could result in lost sales in the future.
The premier rating agency has also reaffirmed the FA+ rating assigned to the fixed deposit (FD) programme of Indian Container Leasing Company Ltd. The ratingreflects the company's strong presence in the container leasing business, steady increase in business volumes and a comfortable capital structure.
Meanwhile, Icra Ltd has assigned an LAA+ rating to the Rs 60-crore non-convertible debenture (NCD) programme of Piem Hotels Ltd (PHL). The rating for the company's FD programme has been retained at MAA+.PHL is an associate entity of The Indian Hotels Company Ltd. The principal units under its operation are the President, Mumbai, and the Taj Residency, Bangalore. The rating agency has assigned an A1+ rating to the Rs 25-crore commercial paper (CP) programme of S Kumars Synfab Ltd (SKSL), indicating highest safety. Icra has also assigned an LA+ rating to the Rs 25-crore NCD programme of the company indicating adequate safety. SKSL is setting up a worsted suitings plant near Mysore and this will be the company's foray into the premium segment of fabrics. Icra expects the project to be commissioned by April 1998. The success of this venture would be crucial for thecompany in the long run, according to Icra.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
