Bharat Heavy Electricals Limited (BHEL) has announced an upgrade in its credit rating by India Ratings & Research. The long-term rating has been elevated to ‘IND AA / Stable’ from ‘IND AA – / Positive’. The short-term rating remains reaffirmed at the highest level of ‘IND A1+’. This upgrade reflects the company’s solid operational and financial performance, bolstering investor confidence and potentially improving borrowing terms.
BHEL’s Credit Rating Sees Significant Upgrade
Bharat Heavy Electricals Limited (BHEL) has received a positive re-evaluation from India Ratings & Research, marking a significant upgrade in its credit profile. The agency has now assigned BHEL a long-term rating of ‘IND AA / Stable’, an improvement from the previous ‘IND AA – / Positive’ outlook. This upgrade signifies enhanced financial stability and a stronger outlook for the company’s long-term prospects.
Short-Term Rating Reaffirmed
In addition to the long-term rating upgrade, India Ratings & Research has reaffirmed BHEL’s short-term rating at the highest possible level, ‘IND A1+’. This reaffirmation underscores the company’s robust liquidity and its ability to meet short-term obligations effectively.
Basis for the Upgrade
The upgrade is based on the assessment of BHEL’s sustained operational and financial performance. India Ratings expects this strong performance to continue through to FY 2025-26 and the first quarter of FY 2026-27. The agency’s report highlights the company’s capacity to manage its financial obligations, which is crucial for investor confidence and future growth initiatives.
Financial Facility Details
The rating upgrade encompasses BHEL’s total bank loan facilities, which are rated at ₹80,000 Crores under the new ‘IND AA / Stable’ long-term rating. Furthermore, its Commercial Paper / Unsecured Loan facilities, amounting to ₹5,000 Crores, are confirmed at the highest short-term rating of ‘IND A1+’.
Source: BSE
