MUMBAI (Thomson Financial) - Indian rating agency ICRA said it has retained its 'IrAA' issuer ratings on India's Petronet LNG Ltd (PLL), indicating the company's high credit quality, which carries low credit risk.
The ratings reflect the strength of sound project participants, the robustness of the contractual structure addressing most of the risks in the project, and PLL's track record in running the regassification facility and generating profits, ICRA said.
ICRA said the ratings also factor in the large latent demand for gas in the country and the companys favourable financial risk profile, characterized by moderate gearing level and comfortable debt servicing ability.
However the rating is constrained by the project implementation risks inherent in PLLs significant capex programme and the emanating supply risks as PLL is yet to be tied up on a long term basis for the balance requirement of the Dahej expansion and greenfield project at Kochi.
PLL has been promoted by four public sector units namely, Oil & Natural Gas Corp Ltd, GAIL (India) Ltd, Indian Oil Corp Ltd and Bharat Petroleum Corp Ltd, with each of them having a 12.50 pct equity stake. Gaz De France and the Asian Development Bank (ADB) have a 10 pct and 5.2 pct stake in the company with the rest held by institutional investors and the general public.
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