Care Ratings Limited has assigned Credit Rating on Long Term and Short Term Credit Facilities of Brahmaputra Infrastructure Limited ( CARE BBB-; STABLE) Investment Grade.
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CARE Ratings has assigned a credit rating of CARE BBB- with a Stable outlook to Brahmaputra Infrastructure Limited, calling it investment grade. The rating covers Long Term Facilities of Rs 19.19 crore, another Long Term Facility of Rs 106.79 crore, Long Term/Short Term Bank facilities of Rs 108.89 crore, and Long Term Instruments of Rs 165.13 crore, totaling Rs 400 crore. The company describes this as an upgradation of its credit rating and says it will help it raise additional funds, issue surety bonds from insurance companies, and secure more non-fund-based credit lines from existing lenders. Going forward, the company plans to raise further capital via warrants, preferential allotments, or rights issues to fund project expansion and working capital needs.
This is a positive development for shareholders — an investment-grade BBB- rating lowers borrowing costs, improves access to bank and insurance funding, and supports the company's planned fundraising, which could dilute existing shareholders if done via warrants or preferential allotments.