AAA for BHEL

The AAA (triple A) rating assigned to the proposed Rs. 300 crore bonds programme of Bharat Heavy Electricals (BHEL) has been reaffirmed. The P1 plus (P one plus) rating assigned to the Rs. 500 crore short term debt programme of BHEL has been reaffirmed. The FAAA (F triple A) rating assigned to the fixed deposit programme of BHEL has also been reaffirmed.

The ratings reflect the pre-eminent position of BHEL in the Indian power equipment and engineering industry emanating from its large size of operations, large installed base, diversified business, low cost structure and impressive operating efficiency. The healthy financial position of the company, characterised by its favourable capital structure, strong cash accruals and efficient working capital management, is also a key rating input.

The rating agency expects BHEL to maintain its healthy business and financial position through effective mitigation of the impact of adverse market conditions and increasing competition from multinational companies.

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Section  : Business
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