India Ratings and Research (Ind-Ra) has placed Sterling and Wilson Solar Limited's (SWSL) Long-Term Issuer Rating of 'INDAA-' on Rating Watch Negative (RWN). The Outlook on the earlier rating was Stable.
The RWN reflects the uncertainty regarding the refinancing / rollover of SWSL's short-term loans worth around INR11.8 billion maturing over the remainder of November 2019 until January 2020. This follows the event on 14 November 2019, where Sterling and Wilson Private Limited's (SWPL; 'INDA'/RWN) promoters have sought an extension for the repayment of inter company deposits to the tune of INR23.41 billion as of September 2019 to Sterling and Wilson Solar Limited. Both SWPL (unlisted entity) and SWSL (listed entity) have common promoters – SPCPL and Kurshed Daruwala. SWSL has significant debt repayment of INR7.9 billion in December 2019, beginning 13 December. Ind-Ra expects SWSL to provide clarity on its refinancing plans by the first week of December 2019. Any delay in the refinancing arrangement beyond that will be credit negative.