Crisil Upgrades Welspun Corp's Long-Term Rating To ‘AA+’, Outlook Stable

Welspun Corp. Ltd. on Wednesday said Crisil Ratings has upgraded its rating on the company’s long-term bank facilities and non-convertible debentures to ‘AA+’ from ‘AA’, and revised the outlook to ‘stable’ from ‘positive’.

The upgrade reflects a sustained improvement in the group’s business risk profile, aided by optimisation of newly added capacities over the past three years through brownfield and greenfield projects and inorganic expansion, Crisil said in its rationale.

The rating agency expects the company’s capital structure to remain strong, with capex planned over the next three years supported by robust operating cashflows and a modular execution model.

Crisil said Welspun Corp. continues to maintain a strong financial risk profile with comfortable leverage, adequate debt protection metrics and ample liquidity, though it remains exposed to risks from regulatory changes and slowdown in key end-user industries.
Crisil reaffirmed the company’s short-term rating at ‘A1+’.