BSES Ltd

  • Non-convertible debentures - Rs. 50 crore Rating : AAA (reaffirmed)

Crisil has reaffirmed the ‘AAA’ rating assigned to the Rs. 50-crore non-convertible debenture programme of BSES Ltd. The assigned rating reflects BSES''s comfortable business position, with present current regulations allowing it to earn a reasonable return on its capital base after meeting all costs.

The rating also takes into account the efficient power generation at the company’s Dahanu plant, its established distribution network with low transmission and distribution losses, and a strong market position in its licensed area. The company''s sound financial position, characterised by healthy cash flow generation, comfortable gearing and interest coverage ratios have also been factored into the assigned ratings. The aggressive growth plans at BSES, corresponding investments, and their impact on the company''s financials have also been factored in.

BSES is a licensee and is in the business of generation and distribution of electricity to consumers in its licensed area. The licensed area of BSES covers 384 sq. km, accounting for approximately three-fourths of the area of Mumbai.