Please find enclosed herewith the letter received from CARE Ratings Limited for the Credit Rating for Bank Facilities.
Awaiting price reaction for this filing.
CARE Ratings has reviewed Gujarat State Petronet's (GSPL) credit rating following its announced amalgamation with Gujarat Gas Limited (GGL) and the subsequent de-merger of its transmission business into a separate listed entity. The long-term rating of CARE AA+ has been placed on 'Rating Watch with Developing Implications' (RWD), while the short-term rating of CARE A1+ has been reaffirmed. Total rated bank facilities have been reduced sharply from Rs. 800 crore to Rs. 300 crore (long-term: Rs. 50 crore, long-term/short-term: Rs. 250 crore). CARE will take a final call on the rating once the credit impact of the merger and de-merger becomes clearer.
No rating downgrade has occurred, but the watch status reflects uncertainty from the major restructuring, which could lead to a rating revision (up or down) once merger terms are finalized. Investors should expect some near-term ambiguity on the stock's credit profile until the restructuring outcome is clear.