CARE assigns investment grade BBB- rating to Suzlon

Upgraded rating, valid till Sept 2016, for outstanding bank facilities and proposed commercial paper instrument

Credit rating agency CARE has assigned investment grade credit rating (BBB—) to wind energy turbine manufacturer Suzlon for its outstanding bank facilities and to the proposed commercial paper instrument. The rating is valid until September 15 next year.

For the long term-rupee denominated term loans worth Rs 2,744 crore, CARE has assigned BBB— for fund-based working capital limits worth Rs 2,192 crore, it has also given BBB—.

CARE has assigned an A3 rating for non-fund-based working capital limits worth Rs 5,622 crore and also for the proposed commercial paper worth Rs 1,000 crore. Suzlon group has installed 14,500 Mw of wind energy capacity in 19 countries.

Chief Financial Officer Kirti Vagadia said, “We have been upgraded to investment grade BBB— from D rating (in 2012). The rating clearly demonstrates our restored credibility on account of significant de-leveraging, strong industry outlook, our sizeable order book, order pipe line and strong operating performance. We have maintained strict discipline from the beginning of the current financial year towards timely payments of all our financial obligations.’’

Group Chairman Tulsi Tanti had told Business Standard its profitability and performance reflected the improvement in operational efficiency.