SREI ratings kept unchanged by ICRA

New Delhi, June 8 (UNI) Taking note of the proposed joint venture between SREI Infrastructure Finance Ltd (SREI) and BNP Paribas Lease Group (BPLG), credit rating agency ICRA today kept the ratings on various debt instruments of SREI unchanged.

ICRA rated the Fixed Deposit Programme of SREI a MAA- rating, indicating high credit quality and an LA+ rating outstanding on Rs 50 crore Subordinated NCD Programme which indicates adequate credit quality.

The proposed scheme would improve the capital structure of SREI, which would be servicing the fixed deposit holders to support the larger ticket project finance business and thus its credit fundamentals are expected to remain unchanged, a statement said.

The subordinated debt is likely to be transferred to the JV as indicated by the management.

A larger capital base and BNP's presence in the subsidiary would help the JV capitalise on the SREI's business strengths.

The JV is proposed with an initial net of Rs 800 crore, involving a new JV company equally owned by each of SREI and BPLG.

UNI