Bhel Debentures Rated Aaa By Icra

Investment Credit and Research Agency (Icra) has assigned AAA rating to the Rs 300-crore debenture issue of Bharat Heavy Electricals Ltd (Bhel).

Besides, the agency has rated the companys Rs 500-crore short-term debt programme as A1+.

A K Chakraborty, general manager and company secretary, Bhel, told Business Standard, We have just got ourselves rated, but are yet to decide on when to tap the market. The Icra rating indicates highest safety.

Improved order book position and operating margins have reduced Bhels dependence on borrowed funds which, in turn, have resulted in improved coverage ratios. Bhel is Indias largest and worlds twelfth biggest electrical equipment company, engaged in the manufacture of power equipment for the electricityutility sector. In the past, the company had been hamstrung by its inability to provide supplier financing. However, it has partially overcome this by bidding for projects in consortium with international players.

Bharat Heavy Electricals high receivable level due to its exposure to state electricity boards (SEBs) is likely to come down as independent power producers are expected to be important contributors to the power divisions turnover.

Moreover, the business from the industry division, which has low receivable levels, has been increasing.