ICRA reaffirms A1+ to HEG's Rs 40 cr CP Prog

New Delhi, June 2 (UNI) Credit rating agency ICRA has retained the A1+ rating for the Commercial Paper (CP) Programme of HEG Ltd (HEG) for an enhanced amount of Rs 40 crore.

The rating is the highest-credit-quality rating assigned by ICRA to short-term debt instruments.

The reaffirmation takes into account HEG's cost-efficient graphite electrode business operations, its global demand supply position and its liquidity and debt protection measures.

The rating also takes into consideration reduced exposure to group companies, namely Malana Power Company Ltd (MPCL), following the vacation of guarantees given by HEG for debt raised by MPCL and lower investment requirement for the group's new Hydel project (Allain Duhangan) with a strategic investor agreeing to provide the bulk of incremental equity contribution for the project.

While reaffirming the rating, ICRA has taken note of significant increase in HEG's gearing to 2.51 times as on March 31, 2006 from 1.54 times as on March 31, 2005.

UNI CS PV ND1512