India Ratings upgrades IREDA’s ratings to ‘AAA’ (Outlook: Stable) from ‘AA+’ (Outlook: Positive)

New Delhi: The credit rating agency India Ratings has upgraded the debt instruments rating of the Indian Renewable Energy Development Agency Limited (IREDA) to ‘AAA’ (Outlook: Stable) from ‘AA+’ (Outlook: Positive).

Earlier, in March 2023, ICRA had also upgraded IREDA's ratings to 'AAA' (Outlook: Stable) from 'AA+' (Outlook: Positive).

The ratings reflect a continuous improvement in IREDA’s credit profile in terms of asset quality, provisioning coverage and franchise growth. India Ratings continues to factor in IREDA’s strong linkages with the Government of India and its position as an apex institution for the expansion and financing of renewable energy (RE) projects in India. IREDA’s gross non-performing assets fell to Rs 15.13 billion (3.21 percent) in FY'23 (FY'22: Rs 17.68 billion, 5.21 percent). The net non-performing assets too declined to 1.66 percent in FY23 (FY'22: 3.12 percent). India Ratings expects IREDA to keep playing a crucial role in reducing emissions as well as developing India’s RE sector, particularly to achieve the target of 500 GW by 2030.

IREDA's Chairman and Managing Director (CMD) Pradip Kumar Das expressed satisfaction with the rating upgrade from India Ratings, following the earlier upgrade from ICRA. He highlighted that, “the enhanced rating will facilitate IREDA in accessing capital at lower costs. This, in turn, will benefit project developers by allowing them to secure loans from IREDA at lower interest rates. Consequently, the company's portfolio in renewable energy project financing can expand, further supporting India's journey towards a cleaner and more sustainable future.”

Das acknowledged that these upgrades recognize IREDA's strong credit profile, exceptional growth, and commitment to best quality corporate governance over the past three years. He attributed this success to the continuous support and guidance of Union Minister of Power, New and Renewable Energy RK Singh, Minister of State, New & Renewable Energy, Chemicals & Fertilizers Bhagwanth Khuba, MNRE Secretary Bhupinder Singh Bhalla, officials of MNRE and the Board of Directors for making this achievement possible.

(PSU Watch– India's Business News centre that places the spotlight on PSUs, Bureaucracy, Defence and Public Policy is now on Google News. Click here to follow. Also, join PSU Watch Channel in your Telegram. You may also follow us on Twitter here and stay updated.)