CARE rates bank loans of Punj Lloyd Delta Renewables at A+(SO)/A1+ (SO)

Feb 10, 2012 - CARE on Thursday set an A+(SO) rating to the INR-160-million (USD 3.2m/EUR 2.4m) long-term loans, as well as A+(SO) and A1+(SO) ratings to the INR-895-million long- and short-term bank facilities of Indian Punj Lloyd Delta Renewables Pvt Ltd.

The ratings are based on the credit enhancement provided by Indian energy and infrastructure firm Punj Lloyd Ltd (BOM:532693), or PLL. The A+/A1+ ratings of PLL benefit from its established track record of operations, strong and diversified order book position and improved revenue and profitability in the first half of the fiscal year 2011/2012.

Yet, PLL's elevated financial risk profile, marked by decline in revenue and profitability, elongated operating cycle and weakened solvency and debt coverage indicators in the fiscal 2010/2011 to March 31, 2011, are constraints to the ratings.

Future rating actions will depend on the ability of PLL to execute its order book in time while retaining its profitability margins and adequate capital structure.

Punj Lloyd Delta Renewables is a wholly-owned unit of Singapore-based Punj Lloyd Delta Renewables Pte Ltd, which is in turn a step-down unit of Punj Lloyd.

(INR 100 = USD 2.015/EUR 1.520)

Rating agency website: www.careratings.com

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