Brickwork Ratings assigns 'BWR A (SO)/Stable' for Haryana Vidyut Prasaran Nigam Limited

Brickwork Ratings has assigned 'BWR A (SO)' [Pronounced BWR A (Structured Obligation)] with 'Stable' outlook to Haryana Vidyut Prasaran Nigam Limited's ("HVPNL") proposed unsecured non-convertible bond issue of Rs.500 Crores with a tenor of 12 years. Instruments with this rating are considered to have adequate degree of safety regarding timely servicing of financial obligations. Such instruments carry low credit risk.

The rating has factored, inter alia, the unconditional and irrevocable guarantee of Government of Haryana (GoH) for timely repayment of principal and interest on the proposed issue, escrow mechanism for servicing the proposed issue, restructuring plan under implementation in the state for the power sector, financial position of HVPNL and power distribution companies in Haryana and the state's fiscal position.

The company has provided a copy of the guarantee notification No. 07/4/2012-2 POWER dated 24th August, 2012, which has the concurrence of the Finance Department vide No. 39/4/2012-1FICW/2782 (2012) dated 21st August, 2012.

Source : Equity Bulls

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