Moody's gives GAIL stable currency rating
Moody’s has assigned GAIL India a stable outlook. It has given a Baa2 indicative foreign currency debt rating (1 notch above the sovereign foreign currency rating) and A3 local currency issuer rating (5 notches above the sovereign local currency r...
By TNN |
NEW DELHI: Moody���s has assigned GAIL India a stable outlook. It has given a Baa2 indicative foreign currency debt rating (1 notch above the sovereign foreign currency rating) and A3 local currency issuer rating (5 notches above the sovereign local currency rating) to GAIL. The rating released by Moody���s is in response to the company���s proposal to get an international rating. The company already has the highest domestic rating from ICRA.
While announcing the rating, Moody���s have stated that with an extensive pipeline network, GAIL is strongly placed to take advantage of the strong demand and increased gas-supply environment. The rating takes into consideration the fact that 70% of GAIL���s EBIDTA is derived from the relatively stable and reliable gas transmission and LPG business.
The rating also reflects the company���s high level of diversification and the synergies apparent in different segments.
The credit rating exercise was initiated by the company to facilitate borrowing in domestic as well as the international markets to fund the future growth plans of the company.
The company has huge funding requirements in the next five years to meet the capex requirement in gas transmission and gas processing in India and abroad. The rating will help GAIL in ensuring on-time availability of the required funds, in rupees and /or in foreign currency. GAIL is also thinking of getting a second international rating done which would further widen the scope for mobilising international debt funds at competitive rates.
The company had appointed Citigroup and HSBC as its rating advisors. The ratings involved due diligence by Moody���s covering the existing operations as well as future plans.
While announcing the rating, Moody���s have stated that with an extensive pipeline network, GAIL is strongly placed to take advantage of the strong demand and increased gas-supply environment. The rating takes into consideration the fact that 70% of GAIL���s EBIDTA is derived from the relatively stable and reliable gas transmission and LPG business.
The rating also reflects the company���s high level of diversification and the synergies apparent in different segments.
The credit rating exercise was initiated by the company to facilitate borrowing in domestic as well as the international markets to fund the future growth plans of the company.
The company has huge funding requirements in the next five years to meet the capex requirement in gas transmission and gas processing in India and abroad. The rating will help GAIL in ensuring on-time availability of the required funds, in rupees and /or in foreign currency. GAIL is also thinking of getting a second international rating done which would further widen the scope for mobilising international debt funds at competitive rates.
The company had appointed Citigroup and HSBC as its rating advisors. The ratings involved due diligence by Moody���s covering the existing operations as well as future plans.
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