Astonfield Renewables, announced today that Credit Rating Information Services of India Limited (CRISIL), has given an A- credit rating on loan facilities for its 5 megawatt (MW) solar power plant in the state of Rajasthan.
Astonfield is the first company to receive an A class rating by CRISIL for a solar power plant in India. The “CRISIL A-/Stable” rating was given on long-term loan facilities. According to the agency, Astonfield has “a comfortable financial risk profile, marked by healthy debt protection metrics.” Furthermore, CRISIL noted Astonfield’s debt service coverage ratio “is expected to be healthy.”
The A- rating reflects the strong revenue visibility of Astonfield’s 5 MW solar power plant, driven by its 25 year power purchase agreement with NTPC Vidyut Vyapar Nigam Ltd. with “better realisation [sic] per unit and sound operational performance.” The plant has been in operation since 2011.
“Astonfield is focused on developing renewable energy projects that earn a profitable return on investment, and this rating reinforces that core strength,” said Ameet Shah, Co-Chairman of Astonfield Renewables. “As a long-term owner of renewable power-generating assets in India, we are able to deliver healthy returns to our investors while maintaining a lower risk profile.”