Brickwork Ratings assigns Provisional "BWR A (SO)" for RRVPN's proposed Bond Issue of Rs.450 Crores

Brickwork Ratings (BWR) has assigned Provisional BWR A (SO) [Pronounced BWR A (Structured Obligation)]Rating with 'Stable' outlook forRajasthan RajyaVidyutPrasaran Nigam Ltd's(RRVPN)proposed Bond Issue of INR450 Crores(INRFour Hundred and Fifty Crores only) with a tenor of 12 years.Instruments with this rating are considered to have adequate degree of safety regarding timely servicing of financial obligations. Such instruments carry low credit risk.

The rating has factored, inter alia, the unconditional and irrevocable guarantee of Government of Rajasthan (GoR) for timely payment of principal and interest on the proposed issue, structured payment mechanism for servicing the proposed issue, escrow of receivables, RRVPN's track record of debt servicing, financial position of RRVPN and the state's fiscal position.

The rating is provisional and will be affirmed on execution of said guarantee documents by Government of Rajasthan, tripartite agreement and creation of escrow mechanism with a SEBI registered trustee to meet the bond obligations and other details in accordance with the structure.

Source : Equity Bulls

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