Latest news with #ICRA
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Business Standard
6 hours ago
- Business
- Business Standard
ICRA downgrades NIIF backed Radiance Renewables' long term rating
Rating agency ICRA has downgraded NIIF-backed Radiance Renewables Private Ltd's (RRPL's) long-term rating from 'A' to 'A-' due to moderation in its credit profile and delays in capacity additions. The downgrade factors in the weakening of credit metrics following the use of additional mezzanine debt of Rs 525 crore in July 2025 to fund equity requirements for ongoing projects, and the slower-than-expected progress in capacity additions. The agency also revised the outlook on the ratings from 'stable' to 'negative', citing modest credit metrics. It affirmed the short-term rating at 'A2+'. RRPL, a renewable energy firm, is a 100 per cent subsidiary of Green Growth Equity Fund (GGEF), which counts the National Infrastructure and Investment Fund (NIIF) and the Government of the United Kingdom among its anchor investors. The company posted a loss of Rs 120.8 crore on operating income of Rs 557.5 crore in FY25. It had reported a loss of Rs 75.3 crore on operating income of Rs 409.1 crore in FY24. ICRA said in a statement that the company availed a mezzanine debt of Rs 525 crore in July 2025, of which Rs 185 crore has been used to repay an earlier mezzanine debt. The remaining amount will fund the equity requirements of upcoming projects in its subsidiaries. Delays in securing incremental equity funding have constrained progress on planned expansion. RRPL had an operational solar power capacity of 610 Megawatt Peak (MWp) as of June 2025, a modest rise from approximately 500 MWp in May 2024, due to delays in land acquisition and fund-raising. Additionally, the company has an under-construction capacity of around 250 MWp and a near-term pipeline of about 256 MWp. This will take the overall installed solar capacity to approximately 1,100 MWp over the next 12–15 months. RRPL aims to scale capacity further to 2,000 MWp by FY28. In this context, ICRA said the ability to raise equity to fund expansion and refinance the mezzanine debt, thereby improving debt coverage metrics, would remain a key rating sensitivity. The reliance on mezzanine debt over equity is expected to moderate the company's debt coverage indicators at a consolidated level. The Debt Service Coverage Ratio (DSCR) is projected to remain weak in the current financial year (FY26) and modest thereafter, the agency said. The liquidity position of RRPL (standalone) remains adequate, supported by the new mezzanine debt which enabled it to meet equity contributions for projects. The liquidity position is expected to stay adequate, given plans to raise additional equity in FY26 to fund upcoming projects comfortably, it added.
Economic Times
2 days ago
- Business
- Economic Times
June core output at 3-month high on steady govt capex
Synopsis India's core sector shows growth. Output reached a three-month high in June at 1.7%. Government spending on infrastructure supported this growth. Steel and cement production increased. Refinery products also saw gains. However, coal, natural gas, electricity, crude oil, and fertilizers declined. Experts predict further improvement in July. Industrial activity may be impacted. ANI Representative Image New Delhi: India's core sector output grew to a three-month high of 1.7% in June, driven by sustained government capital expenditure that supported infrastructure-related sectors, even as five of the eight core industries recorded contraction, official data released Monday showed. The growth was 1.2% in May and 5% in June 2024."Steady government capex, along with the reasonable growth in steel, cement and refinery products pulled up the infrastructure output to a three-month high," said Paras Jasrai, associate director at India Ratings and Research (Ind-Ra).The steel output surged to a seven-month high of 9.3% in June, while cement production increased by 9.2%, due to a favourable base effect. "The growth in volumes of these segments has been quite healthy in Q1FY26, which implies that the construction sector is poised to record a robust GVA (gross value added) growth in the quarter," said Aditi Nayar, chief economist at ICRA. Official GVA figures for the June quarter will be released in August. Output of refinery products grew to a five-month high of 3.4% strong performance of these three sectors helped prevent a contraction in core sector output, offsetting decline in other five industries - coal (6.8%), natural gas and electricity (2.8% each), and crude oil and fertilizers (1.2% each)."While an elevated base weighed upon coal output, excess rains in the latter half of June impacted electricity generation," explained added that the swift progression of the southwest monsoon across the country along with a high base effect were some of the average, core sector output averaged 1.3%, lower than 6.2% in the corresponding period last ahead, Ind-Ra projects core sector output to improve further to around 2% year-on-year in the eight core industries account for 40.27% weight in the Index of Industrial Production (IIP), economists expect the tepid growth in core sector output to impact industrial activity as output grew by 1.2% year-on-year in May from 2.6% in April, according to official data released last month. Estimates for June will be released on July anticipates IIP growth to remain around 1.5% in July, while ICRA expects 1.5-2.5%.
Hans India
4 days ago
- Business
- Hans India
India's credit rating agencies demolish allegations against Vedanta
India's leading credit rating agencies, Crisil Ratings and ICRA have reaffirmed the Company's credit ratings, underscoring continued confidence in Vedanta's overall business stability, healthy financial performance and strong adherence to corporate governance. Significantly, the Crisil report notes that based on feedback from management and select lenders, the rating agency 'understands that currently there has been no adverse reaction from any lender or investor.' The rating agency reaffirmed its long-term ratings of Crisil AAA for Hindustan Zinc Ltd and Crisil AA for Vedanta. ICRA has reaffirmed its long-term rating at AA. The agencies' assertion comes as a strong rebuttal to short seller Viceroy's allegations that had charged Vedanta Ltd's parent, Vedanta Resources of structural subordination and reliance on dividends to service debt. The CRISIL report further said that stock prices for both Vedanta Ltd and Hindustan Zinc Ltd have already recovered since the publication of the report. 'Crisil Ratings has taken note of the short-seller report on the Vedanta group, published on July 9, 2025, and the subsequent intraday volatility in the share prices of Vedanta Limited and Hindustan Zinc Limited. The Vedanta management in response, via its press release dated July 9, 2025, has dismissed all the charges. Crisil notes that the stock prices for Vedanta Limited (VEDL) and Hindustan Zinc Limited (HZL) have recovered since the report's publication,' the note said. Crisil has ratings outstanding on 11 entities of the Vedanta group including Hindustan Zinc, ESL Steel Ltd, Talwandi Sabo Power Ltd and Sesa Resources Ltd and ratings have been reaffirmed for all. 'Crisil keeps all its outstanding ratings under continuous surveillance. The ratings of Vedanta and its subsidiaries continue to be supported by the strength of the business risk profiles of their Indian operations and healthy financial performance,' the note said. Similarly, ICRA has drawn comfort from the Group's stated commitment towards continued debt reduction. The leverage (net debt/OPBDITA), including Vedanta Resources Limited's (VRL) debt, improved to 2.5 times in FY2025 compared to 3.2 times reported in FY2024. Healthy profitability, particularly in the aluminium and zinc operations, is expected to further support the Group's leverage profile. Moreover, ICRA considers the total debt and financial expenses of VRL to calculate the adjusted leverage and coverage metrics of Vedanta Limited (VDL). As per credit rating methodology, AAA rating signifies Instruments with this rating are considered to have the highest degree of safety regarding timely servicing of financial obligations. Such instruments carry lowest credit risk. Similarly, AA rating signifies Instruments with this rating are considered to have high degree of safety regarding timely servicing of financial obligations. Such instruments carry very low credit risk. Therefore, the allegations made in the report regarding Vedanta's unsustainable debt and financial fragility are completely unfounded and lack any credible basis. Given that Vedanta's instruments carry the highest (AAA) and very high (AA) credit ratings, it clearly demonstrates their robust financial health and exceptional capacity to meet their obligations on time. Such ratings unequivocally reflect the lowest levels of credit risk, firmly contradicting any claims of vulnerability or instability. At Vedanta Resources Limited's level, the recent refinancing of debt has smoothened the maturity profile over the long tenure and is likely to reduce the finance cost FY2026 onwards.
Time of India
5 days ago
- Business
- Time of India
Crisil, ICRA reaffirm credit rating, underscore confidence in business stability, says Vedanta
Vedanta on Friday said rating agencies Crisil Ratings and ICRA have reaffirmed their credit ratings, underscoring continued confidence in the mining major's overall business stability . In a regulatory filing, Vedanta said ICRA Ltd has reaffirmed the company's credit ratings, underscoring continued confidence in Vedanta's overall business stability and healthy financial performance, healthy financial performance and strong adherence to corporate governance. Explore courses from Top Institutes in Select a Course Category Public Policy MCA Artificial Intelligence Data Science Healthcare Degree healthcare MBA Design Thinking Operations Management PGDM Product Management Others Cybersecurity Project Management Data Analytics Technology Digital Marketing others CXO Leadership Finance Data Science Management Skills you'll gain: Duration: 12 Months IIM Calcutta Executive Programme in Public Policy and Management Starts on undefined Get Details Skills you'll gain: Economics for Public Policy Making Quantitative Techniques Public & Project Finance Law, Health & Urban Development Policy Duration: 12 Months IIM Kozhikode Professional Certificate Programme in Public Policy Management Starts on Mar 3, 2024 Get Details Vedanta said that ICRA has reaffirmed its long-term rating at AA. In another filing Vedanta said, "Crisil Ratings Ltd ... has reaffirmed the company's credit ratings, underscoring continued confidence in Vedanta's overall business stability and healthy financial performance." The rating agency reaffirmed its long-term ratings of Crisil AAA for Hindustan Zinc Ltd and Crisil AA for Vedanta. Live Events Crisil Ratings said that it has taken note of the recent short-seller report and, after independent evaluation, reaffirmed Vedanta's ratings, according to the regulatory filing. "CRISIL has its credit ratings outstanding on multiple entities of the Vedanta group, and all have been reaffirmed. Further, based on independent feedback, CRISIL understands that currently there has been no adverse reaction from any lender or investor," it said. The filing further said that ICRA draws comfort from the group's stated commitment to ongoing debt reduction. "The leverage ratio (Net Debt/OPBDITA), including Vedanta Resources Limited's debt, improved to 2.5x in FY 2025, down from 3.2x in FY 2024. Further, Vedanta's healthy profitability, particularly in its aluminium and zinc operations, continues to strengthen its credit profile. Additionally, the recent refinancing at VRL has effectively smoothened the debt maturity profile and is expected to reduce finance costs from FY 2026 onwards," the filing said. US short seller Viceroy Research had last week released a report charging billionaire Anil Agarwal's mining conglomerate to be "financially unsustainable" and posing a severe risk to creditors, allegations which the group called "selective misinformation and baseless" aimed at discrediting the group. Responding to the report, Vedanta in a statement had said, "The report is a malicious combination of selective misinformation and baseless allegations to discredit the Group". "It has been issued without making any attempt to contact us with the sole objective of creating false propaganda. It only contains a compilation of various information, which is already in the public domain, but the authors have tried to sensationalise the context to profiteer from market reaction," it had said. PTI SID MR
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Business Standard
5 days ago
- Business
- Business Standard
After record issuances in FY25, infrastructure bonds lose their sheen
Infrastructure bonds, which were popular in FY25, have lost their appeal in FY26 as banks face stronger deposit growth and moderated credit demand, with issuances expected to be much lower this year Subrata Panda Mumbai Listen to This Article Infrastructure bonds, which were the flavour of the season in FY25 for commercial banks to raise funds through the domestic debt capital market amid lagging deposit growth, seem to have lost their sheen in the current financial year (FY26). So far in FY26, no bank has tapped the domestic debt capital market to raise funds via infrastructure bonds, and the expectation is that the amount raised through this route will be significantly lower than last year, unless credit demand picks up. According to data from rating agency ICRA, banks—state-owned and private-sector lenders—raised Rs 94,490 crore through infrastructure bonds in FY25.
