Wind turbine manufacturer Suzlon Group has secured an investment credit rating for its long-term loan facilities after about three years. Rating agency CARE has assigned an investment grade credit rating to the Wind turbine manufacturer's outstanding bank facilities as well as to the proposed commercial paper instrument. The company said in a statement that rating agency CARE has assigned BBB- credit rating assigned for long-term bank facilities and fund-based working capital limits.
Instruments with 'CARE BBB' rating are considered to have moderate degree of safety regarding timely servicing of financial obligations. Such instruments carry moderate credit risk. Suzlon Group Chief Financial Officer Kirti Vagadia said, "We are pleased to announce that we have been upgraded to Investment grade (BBB-) from D rating (in 2012)." "The rating clearly demonstrates our restored credibility on account of significant deleveraging, strong industry outlook, our sizable order-book, order pipe-line and strong operating performance. We have maintained strict discipline from the beginning of the current financial year towards timely payment of all our financial obligations," Vagadia said. Instruments with 'CARE D' rating are in default or are expected to be in default soon. The wind turbine manufacturer further said 'CARE A3' credit rating was assigned for its non-fund based working capital limits and proposed commercial paper.
Instruments with 'CARE A3' rating are considered to have moderate degree of safety regarding timely payment of financial obligations. Such instruments carry higher credit risk as compared to instruments rated in the two higher categories.
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