Crisil upgrades Suzlon Energy ratings to BBB+ with positive outlook

New Delhi: Renewable solutions provider Suzlon Energy on Wednesday said Crisil upgraded its ratings by two notches to BBB+/A2 with a positive outlook.

"Suzlon Group today announced that Crisil has upgraded the ratings of Suzlon Energy Ltd to CRISIL BBB+/A2 from ‘CRISIL BBB-/A3' with a Positive Outlook for long-term and short-term facilities, reflecting the company's strengthened financial position, operational excellence and favourable sectoral tailwinds," a company statement said.

According to the statement, the rating upgrade is a result of Suzlon's successful reduction of debt by repaying the entire term debt through the proceeds of a qualified institutional placement (QIP) of approximately Rs 2,000 crore.

The reduction in fund-based borrowings, steady cash flows from the operations and maintenance (O&M) services business, and improved business profile in the wind turbine segment have contributed to this upgrade.

Suzlon Group Chief Financial Officer Himanshu Mody said, "This upgrade is a validation of our dedication to sound financial management, operational excellence, and sustainable expansion".

By successfully repaying our term debt and improving our financial flexibility, we are better positioned to seize opportunities within the renewable energy sector and continue our growth journey, he added.

This two-notch long-term rating upgrade and a positive outlook of Crisil ratings largely indicate its expectations of continued achievement, given the company’s strong business fundamentals and a favourable market environment for the Indian wind energy sector, it stated.