Hindustan Copper Limited has received a significant upgrade in its long-term credit rating from ICRA Limited to [ICRA]AAA (Stable), a substantial improvement from the previous [ICRA]AA+ (Stable). The short-term rating has also been reaffirmed at [ICRA]A1+. These upgrades apply to the company’s bank facilities of ₹2,100 crore and its commercial paper of ₹100 crore, reflecting enhanced financial strength and stability.
Hindustan Copper Achieves Top Credit Rating
Hindustan Copper Limited (HCL) announced today that ICRA Limited has upgraded its long-term credit rating to [ICRA]AAA (Stable). This represents a significant enhancement from the prior rating of [ICRA]AA+ (Stable). The rating agency also reaffirmed HCL’s short-term credit rating at [ICRA]A1+.
Scope of Rating Upgrade
The upgraded rating of [ICRA]AAA is applicable to the company’s long-term fund-based bank facilities and instruments totaling ₹2,100 crore. Additionally, HCL’s short-term rating of [ICRA]A1+ has been reaffirmed for its commercial paper program, valued at ₹100 crore. This development underscores the company’s robust financial health and operational performance.
Details of Instruments Rated
The rating actions cover several key financial instruments:
- Long-term Fund-based – Term loan: Rated Amount ₹150.00 crore. Action: upgraded from [ICRA]AA+ (Stable) to [ICRA]AAA (Stable).
- Long-term Fund-based – Cash Credit: Rated Amount ₹350.00 crore. Action: upgraded from [ICRA]AA+ (Stable) to [ICRA]AAA (Stable).
- Short term non-fund-based-Others: Rated Amount ₹300.00 crore. Action: reaffirmed at [ICRA]A1+.
- Long-term-non-fund-based-Others: Rated Amount ₹500.00 crore. Action: upgraded from [ICRA]AA+ (Stable) to [ICRA]AAA (Stable).
- Long-term/short-term Unallocated Limits: Rated Amount ₹800.00 crore. Action: long-term rating upgraded from [ICRA]AA+ to [ICRA]AAA (Stable) and short-term rating reaffirmed at [ICRA]A1+.
- Commercial Paper: Rated Amount ₹100.00 crore. Action: short-term rating reaffirmed at [ICRA]A1+.
The total rated amount sums up to ₹2,200.00 crore.
Significance of the Upgrade
An [ICRA]AAA rating is the highest possible credit rating, indicating the utmost degree of financial strength and the lowest credit risk. This upgrade is expected to enhance Hindustan Copper’s borrowing capacity, potentially lead to lower interest expenses on future debt issuances, and bolster investor confidence in the company’s financial stability.
Source: BSE
