Crisil Ratings has also enhanced credit ratings of various solar special purpose vehicles (SPVs) of SAEL Industries Ltd (SIL) based on better functioning, enhanced financial results, and consistent cash flows. The upgrade is an indication of increasing comfort in the renewable energy portfolio of SAEL Group, including solar power generation and photovoltaic (PV) module production in India.
Better Credit Report Increases Investor Confidence.
Based on Crisil rating, the improved ratings indicate the improved credit quality of the SAEL Group owing to revenue stability, long term power purchase contracts (PPAs) and strict financial management. The rating move is projected to enhance the capability of the group to raise funds at reasonable costs to facilitate its current expansion strategies in the rapidly developing renewable energy business in India.
Ratings on Manufacturing SPVs are highly upgraded.
One of the entities that was upgraded was SAEL Solar P6, a PV module producing SPV with capacity of 3.4 GW and was rated with a long-term rating of A- (Stable) and short-term rating of A2+, and is thus a two-notch upgrade. The upgrading of the SAEL Solar MFG, which has a 225 MW module manufacturing plant, to the level of BBB+ (Stable): with a short-term rating of A2 (better utilization of capacity and improved cash flows).
Solar Power Generation Assets Solidifies Financials.
Crisil also improved rating of solar power generation SPVs of SAEL. The long-term rating of SAEL RE Power that manages a 50 MW solar project was rated to be A- (Stable). Meanwhile, solar SPVs SAEL Solar P4 (400 MW) and SAEL Solar MHP2 (300 MW) were rated in the long term as BBB+ (Stable) with a higher debt servicing capacity and stable performance of the plant.
Upgrades are driven with Operational Stability and Execution.
The rating agency reported a consistent availability of plants with long-term PPAs with credible off-takers and efficient execution of the project as a crucial factor that led to the upgrades. Sufficient debt coverage ratios and stable cash flows also enhanced the credit of the SPVs of SAEL.
SAEL Strengthens Presence in the Indian Renewable Industry.
SAEL industries have been growing in the Indian market of renewable energy with diversified portfolio in utility-scale solar IPP, PV manufacturing and agri-waste-to-energy projects. The new ratings are timely since the firm is setting its growth plan in line with the clean energy transition in India and the increasing demand of sustainable power infrastructure.
