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| Product | Quantum (Rs. Cr) | Long Term Rating | Short Term Rating |
| Non Convertible Debentures (NCD) | 2000.00 | ACUITE BB+ | CE | Downgraded | Issuer not co-operating* | - |
| Total Outstanding Quantum (Rs. Cr) | 2000.00 | - | - |
| Erratum: In this version of PR, under the "Any other information section", the statement “APCRDA has submitted latest No Default Statement (NDS) dated as on 31st July 2023 to Acuité. Further, Acuité also tried to sought debenture trustee feedback regarding regular coupon payments, however, the response has not been received from the trustee.” has been removed that appeared in the original PR dated August 29, 2023. |
| Rating Rationale |
| Acuité has downgraded its long-term rating to ‘ACUITE BB+ CE’ (read as ACUITE double B plus; Credit Enhancement) from 'ACUITE BBB+ CE' (read as ACUITE triple B plus; Credit Enhancement) on the Rs.2000 Cr. Non-Convertible Debentures of ANDHRA PRADESH CAPITAL REGION DEVELOPMENT AUTHORITY (APCRDA). The rating downgrade is on the account of information risk. This rating is now an indicative rating and is based on the best information available. |
| About the Company |
| The erstwhile state of Andhra Pradesh was bifurcated in to the successor states of Andhra Pradesh (AP) and Telangana in June 2014 vide the Andhra Pradesh Reorganization Act, 2014 act of the Indian Parliament. Andhra Pradesh Capital Region Development Authority (APCRDA) was formed in 2014 under ‘AP Capital Region Development Act 2014’ and is a statutory body under GoAP. The objectives of APCRDA are planning, coordination, execution, and financing for the development of Amaravati. Amaravati is located in Guntur district with an area of ~217 sq. km. and is strategically located within 30 minutes of driving distance of two major urban centres viz. Vijayawada and Guntur. |
| Standalone (Unsupported) Rating |
| No information provided by the issuer for Acuite to comment upon the Standalone rating. |
| Non-cooperation by the issuer/borrower |
| Acuité has been requesting for data, information and undertakings from the rated entity for conducting surveillance & review of the rating. However, the issuer/borrower failed to submit such information before the due date. Acuité believes that information risk is a critical component in such ratings, and noncooperation by the issuer along with unwillingness to provide information could be a sign of potential deterioration in its overall credit quality. This rating is therefore being flagged as “Issuer not cooperating”, in line with prevailing SEBI regulations and Acuité’s policies. |
| Limitation regarding information availability |
| The rating is based on information available from sources other than the issuer/borrower (in the absence of information provided by the issuer/borrower). Acuité endeavoured to gather information about the entity/industry from the public domain. Therefore, Acuité cautions lenders and investors regarding the use of such information, on which the indicative credit rating is based. |
| Rating Sensitivities |
| No information provided by the issuer / available for Acuite to comment upon |
| All Covenants |
| Affirmative Covenants The issuer covenants with the Bond Trustee that until the Final Settlement Date of Bonds it shall;
Negative Covenants The Issuer hereby covenants with the Bond Trustee that until the Final Settlement Date, the Issuer shall not, except as may otherwise be previously agreed to in writing by the Bond Trustee (acting upon the receipt of the prior written approval of the Majority Bond Holder(s); (a) Merger, Restructuring Etc. (b) Engage in or undertake any restructuring, by way of merger, de-merger, acquisition, restructuring or amalgamation, consolidation. Arrangement With Creditors/Shareholders Enter into any transaction of merger, de-merger, consolidation, re-organization, scheme of arrangement or compromise with its creditors or shareholders or effect any scheme of amalgamation or reconstruction; provided however that this restriction shall not apply in the event that the compliance with this restriction would result in the Issuer defaulting in relation to any of its payment obligations in relation to the Bonds. (c) Disposal Of Assets ; Sell, transfer, or otherwise dispose of assets/business/division in any manner whatsoever. (d)Change Of Business Undertake any new business or diversify or any change in the general nature and conduct of its business. Further main revenue account shall strictly complywater fall mechanism defined in accounts agreement (e) take any action/ commit any omission and/ or allow any action to be taken/ any omission to be committed which would result in the termination of any of the Transaction Documents; (f) undertake that authority shall not provide third party Guarantees in violation of any of the transaction documents (g)wind up, liquidate or dissolve its affairs; (h) enter into any compromise or arrangement or settlement with the creditors of the Issuer. Assessment of Adequacy of CE Structure The CE structure has been designed to ensure adequacy and timeliness in the receipt of funds required for debt service. An independent trustee will be appointed to monitor the structured payment mechanism. |
| Liquidity Position |
| No information provided by the issuer / available for Acuite to comment upon. |
| Outlook: Not Applicable |
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| Other Factors affecting Rating |
| Not Applicable |
| Particulars | Unit | FY 22 (Provisional) | FY 21 (Actual) |
| Operating Income | Rs. Cr. | 39.35 | 31.38 |
| PAT | Rs. Cr. | (203.95) | (298.22) |
| PAT Margin | (%) | (518.29) | (950.34) |
| Total Debt/Tangible Net Worth | Times | 1.23 | 1.47 |
| PBDIT/Interest | Times | 0.10 | 0.00 |
| Status of non-cooperation with previous CRA |
| Not Applicable. |
| Any other information |
| Not Applicable. |
| Applicable Criteria |
| • Application Of Financial Ratios And Adjustments: https://www.acuite.in/view-rating-criteria-53.htm • Default Recognition: https://www.acuite.in/view-rating-criteria-52.htm • Explicit Credit Enhancements: https://www.acuite.in/view-rating-criteria-49.htm • Group And Parent Support: https://www.acuite.in/view-rating-criteria-47.htm • Infrastructure Sector: https://www.acuite.in/view-rating-criteria-51.htm • Service Sector: https://www.acuite.in/view-rating-criteria-50.htm |
| Note on Complexity Levels of the Rated Instrument |
| In order to inform the investors about complexity of instruments, Acuité has categorized such instruments in three levels: Simple, Complex and Highly Complex. Acuite’ s categorisation of the instruments across the three categories is based on factors like variability of the returns to the investors, uncertainty in cash flow patterns, number of counterparties and general understanding of the instrument by the market. It has to be understood that complexity is different from credit risk and even an instrument categorized as 'Simple' can carry high levels of risk. For more details, please refer Rating Criteria “Complexity Level Of Financial Instruments” on www.acuite.in. |
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