Ind-Ra Upgrades Mytrah Energy from ‘IND-BBB’ to ‘IND-A’

The rating agency has upgraded Mytrah’s long-term credit rating from ‘BBB’ TO ‘A-‘ and short term rating from ‘A3’ to ‘A2+’.

A leading wind energy service provider in India, Mytrah Energy (MEIPL) has received a higher credit rating from the chief market analyst India Ratings and Research (Ind-Ra).

The rating agency has upgraded Mytrah’s long-term credit rating from ‘BBB’ to ‘A-‘ and short term rating from ‘A3’ to ‘A2+’.

VC & MD, Mytrah Energy, Vikram Kailas said, “We are exhilarated by the improvement in our rating. This development reinforces the fact that we are now more commercially and operationally stable, and primed to take growth curve to the next level. The upgrade is a reassertion of Mytrah’s strengths as we work towards achieving our vision of creating secure energy future for India.”

Also, the upgrading in the credit ratings is seen as the outcome of company’s increase in the scale of operations and diversifications. The company claimed that its operational and committed renewable asset portfolio grew to 2.2GW in FY18 from 1.75GW in FY17, with 1.8GW of wind assets and 0.4GW of solar assets.

Another factor responsible for the increase in the credit ratings is the company’s in-house Engineering, Procurement and Construction (EPC) team capable of supporting cash flows for wind and solar projects has allowed it to earn EPC margins, which otherwise would have been passed on to original equipment manufacturers.

An increase in revenue and EBITDA, Comfortable Asset-Level Credit Profile amongst other added to the scores for Ind-Ra rating.

Ind-Ra ratings of a company evaluate the credit risk of a company (individual, company or a government) predicting their ability to pay back the debt, and an implicit forecast of the likelihood of the debtor defaulting.