CRISIL gives B+ rating to Kijalk Infrastructure's loans

Mar 5, 2012 - CRISIL today assigned a B+ rating with a "stable" outlook to the INR-200-million (USD 4m/EUR 3m) long-term loan of Indian solar power firm Kijalk Infrastructure Pvt Ltd.

The rating benefits from Tata BP Solar India Ltd's handling of the company's solar plant, its guaranteed 25-year solar power generation agreement with TBSI and low offtake risk.

Yet, the rating is weakened by the low financial risk profile of Kijalk Infrastructure and its exposure to modest project risk.

The rater expects the company to benefit form its power generation contract with TBSI and power purchase agreement with Jharkhand State Electricity Board. If Kijalk Infrastructure stabilises operations at the plant and its production exceeds the projections, the outlook may be improved to "positive". However, if the company's capacity utilisation misses expectations, the outlook may be reduced to "negative".

(INR 100 = USD 2.020/EUR 1.524)

Rating agency website: www.crisil.com

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