CRISIL downgraded long-term bank ratings for BHEL from 'AA+' to 'AA'

Rating agency CRISIL has downgraded long-term bank ratings for Bharat Heavy Electricals (BHEL) from “AA+” to “AA” on weaker-than-expected operating performance and the continued decline in net cash levels in the first half of the current financial year (H1FY20).

The rating on the short-term bank facilities has been reaffirmed at ‘CRISIL A1+’.

BHEL’s revenues declined to Rs 10,757 crore during H1FY20, as against Rs 12,715 crore during H1FY19. The fall in revenues was driven by slower execution of orders.

Lower revenues and high cost structure led to the decline in earnings before interest, tax, depreciation, and amortisation to nil during H1FY20, as against