By Ratnam Raju Nakka

India Ratings and Research (Ind-Ra) has downgraded Shirpur Power Private Limited’s (SPPL) bank loans as follows:

Instrument Type

Date of issuance

Coupon Rate

Maturity Date

Size of Issue (million)

Rating

Rating Action

Rupee term loan

-

-

September 2030

INR15,140

IND D

Downgraded

KEY RATING DRIVERS

The downgrade reflects SPPL’s defaults on debt obligations during the trailing 12 months due to a tight liquidity position.


RATING SENSITIVITIES

Positive: Timely debt servicing for at least three consecutive months could result in a rating upgrade.


COMPANY PROFILE

SPPL is implementing a 300MW (2 X 150MW) sub-critical thermal power plant near Dhule, Maharashtra. The plant will operate on 100% imported coal. The estimated project cost is INR24,8500 million, of which INR8,210 million is being funded by promoter funds, and the rest by debt. The SPV is a 100% subsidiary of Sixvents Power and Engineering Limited (formerly Sintex Power Limited), a part of the Sintex promoter group. As per the management, the company achieved commercial operations date on 28 September 2017.


RATING HISTORY

Instrument Type

Current Rating

Historical Rating/Outlook

Rating Type

Rated Limits (million)

Rating

27 March 2017

25 February 2016

20 January 2015

Rupee term loan

Long-term

INR15,140

IND D

IND BB+/Stable

IND BBB-/Stable

IND BBB-/Stable


COMPLEXITY LEVEL OF INSTRUMENTS

For details on the complexity levels of the instruments, please visit https://www.indiaratings.co.in/complexity-indicators.

SOLICITATION DISCLOSURES

Additional information is available at www.indiaratings.co.in. The ratings above were solicited by, or on behalf of, the issuer, and therefore, India Ratings has been compensated for the provision of the ratings. 

Ratings are not a recommendation or suggestion, directly or indirectly, to you or any other person, to buy, sell, make or hold any investment, loan or security or to undertake any investment strategy with respect to any investment, loan or security or any issuer.

ABOUT INDIA RATINGS AND RESEARCH

India Ratings and Research (Ind-Ra) is India's most respected credit rating agency committed to providing India's credit markets accurate, timely and prospective credit opinions. Built on a foundation of independent thinking, rigorous analytics, and an open and balanced approach towards credit research, Ind-Ra has grown rapidly during the past decade, gaining significant market presence in India's fixed income market. 

Ind-Ra currently maintains coverage of corporate issuers, financial institutions (including banks and insurance companies), finance and leasing companies, managed funds, urban local bodies, structured finance and project finance companies. 

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Analyst Names

  • Primary Analyst

    Ratnam Raju Nakka

    Associate Director
    India Ratings and Research Pvt Ltd Wockhardt Towers, 4th floor, West Wing Plot C-2, G Block. Bandra Kurla Complex Bandra (East), Mumbai 400051
    +91 22 40001742

    Media Relation

    Mihir Mukherjee

    Manager Corporate Communications and Investor Relations
    +91 22 40356121