Sterling and Wilson Renewable Energy Limited has informed the Exchange about Credit Rating
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Infomerics Valuation and Rating Limited has reaffirmed Sterling and Wilson Renewable Energy Limited's credit rating at IVR BBB+/Negative for long-term bank facilities and IVR A2 for short-term facilities. The total rated bank loan facilities stand at Rs. 6,465.21 crore, increased from Rs. 5,903.99 crore previously. While the rating itself was reaffirmed (not downgraded), the outlook has been revised from Stable to Negative. This Negative outlook reflects moderation in operating performance, with EBITDA margins declining to 2.55% in 1HFY26 from 3.92% in FY25, and the company reporting a net loss due to an exceptional item of Rs. 580.10 crore. The tangible net worth eroded to Rs. 415.92 crore, and total debt increased to Rs. 1,194.30 crore from Rs. 901.47 crore, primarily due to elevated working capital requirements. The company continues to have a strong order book of Rs. 9,286.59 crore and strong promoter support from Reliance New Energy Ltd.
The reaffirmation of investment-grade rating with a Negative outlook signals deteriorating financial health, increased leverage, and stretched liquidity. While not a downgrade, the Negative outlook indicates higher credit risk and could pressure bond yields and borrowing costs going forward.