NEW DELHI : NLC India Limited has received a fresh credit-rating review from India Ratings & Research Private Limited covering ₹12,525 crore of disclosed bank loans and debt instruments.
The latest review includes a new ‘IND AAA/Stable’ rating assigned to ₹1,102 crore of bank loan facilities, indicating a strong credit profile for the rated borrowing.
₹2,500 Crore NCDs Retain AAA Rating
India Ratings has also affirmed the ‘IND AAA/Stable’ rating on NLC India’s ₹2,500 crore non-convertible debentures (NCDs).
Meanwhile, the company’s ₹6,000 crore Commercial Paper (CP) programme continues to carry the highest short-term rating of ‘IND A1+’.
A further ₹2,923 crore of bank loan facilities has been affirmed at ‘IND AAA/Stable/IND A1+’.
Key Rating Details
| Debt Instrument | Amount | Rating |
|---|---|---|
| Bank Loan Facilities | ₹1,102 crore | IND AAA/Stable – Assigned |
| Non-Convertible Debentures | ₹2,500 crore | IND AAA/Stable – Affirmed |
| Commercial Paper Programme | ₹6,000 crore | IND A1+ – Affirmed |
| Bank Loan Facilities | ₹2,923 crore | IND AAA/Stable/IND A1+ – Affirmed |
What the Rating Review Means
The latest disclosure indicates that NLC India continues to maintain strong external credit ratings across its disclosed borrowing instruments.
However, it is important to distinguish between the new rating assignment and existing rating affirmations. The announcement does not mean that India Ratings has newly assigned an AAA rating to the entire ₹12,525 crore debt exposure.
Instead, the review includes the new IND AAA/Stable assignment for ₹1,102 crore, along with the continuation of previously assigned strong ratings on other borrowing facilities.
Investor Takeaway
The rating review is broadly positive from a credit-quality perspective, particularly given the continuation of AAA ratings on major long-term debt instruments and the A1+ rating on the Commercial Paper programme.
For investors, the next areas to watch include NLC India’s debt levels, borrowing costs, capital expenditure, project execution and cash-flow generation, particularly as the company expands its power and renewable energy portfolio.
Bottom line: NLC India’s latest rating review covers ₹12,525 crore of disclosed debt instruments, with ₹1,102 crore of bank loans newly assigned ‘IND AAA/Stable’, while major existing debt ratings were affirmed.
