BHEL's 'AAA' rating placed on watch

India Ratings and Research has placed state-owned Bharat Heavy Electricals Ltd's (BHEL) "AAA" Rating on Watch Negative (RWN). The Outlook was Stable. The RWN has been caused by Ind-Ra's ongoing evaluation of BHEL's key business parameters, which have declined.

The agency expects to resolve the RWN during July 2016. The RWN indicates that the ratings may be downgraded or affirmed; any ratings downgrade is likely to be limited to one notch.