CRISIL Assigns 'CRISIL AA-/Stable' Rating to Rs 890 crore Long-Term Bank Facilities of ACME Raisar Solar project in Rajasthan
CRISIL Ratings has assigned 'CRISIL AA-/Stable’ rating to long-term bank facilities of ACME Raisar Solar Energy Pvt Ltd (“ARSEPL”), wholly owned subsidiary of ACME Solar Holdings Limited (“Acme Solar”). This rating is assigned to 300 MW (AC) capacity located in Fategarh, Rajasthan for its INR 890 crores term loan facility from REC Ltd.
CRISIL cited robust revenue visibility, strong financial metrics & debt servicing capability, and a secure cash flow mechanism as key strengths underpinning AA-/Stable rating, one of the highest ratings accorded by the rating agencies. The rating reflects ARSEPL’s strong operational profile supported by a 25-years Power Purchase Agreement (PPA) with Solar Energy Corporation of India Limited (SECI). The fixed tariff for 25 years ensures long-term cash flow predictability, while SECI’s track record of timely payments further enhances the credit profile. Pursuant to this rating upgrade and completion of 6 months of operations, the existing cost of debt is expected to reduce by 75 basis points this month to 8.95% with existing lender as per applicable rate at existing lender for this rating. This reduction doesn’t capture further reduction possible due to expected base rate reduction at existing lender and any refinancing benefits with a new lender .
Outlook: Stable
CRISIL has assigned a "Stable" outlook, reflecting the expectation of continued timely payments from SECI and stable operational performance from this recently commissioned project.
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