GAIL gets highest credit rating

New Delhi, Oct 16 (UNI) Credit rating agency ICRA today reaffirmed LAAA rating, the highest credit quality, to the bonds programme of GAIL (India) Ltd, aggregating Rs 1,500 crore.

The profitability outlook for its petrochemicals and LPG businesses is moderate, the company core operations are characterised by stable and profitable margins and also benefits from the favourable demand outlook for natural gas.

The ratings take into account GAIL's large capital expenditure programme and associated project implementation risks as well as concerns on the gas availability for some of the new pipeline projects.

The agency also notes that the company is exposed to price risk associated with the take or pay liabilities associated with Petronet LNG Ltd's R-LNG, though this risk is partially mitigated by the currently favourable demand position for natural gas.

UNI