Product Quantum (Rs. Cr) Long Term Rating Short Term Rating
Bank Loan Ratings 18752.00 ACUITE BBB+ | Downgraded | Issuer not co-operating* -
Total Outstanding Quantum (Rs. Cr) 18752.00 - -
Total Withdrawn Quantum (Rs. Cr) 0.00 - -
 
Rating Rationale

­Acuité has reaffirmed the long-term rating of ‘ACUITE BBB+’ (read as ACUITE triple B plus) on the Rs.18752.00 crore bank facilities of Kaleshwaram Irrigation Project Corporation(KIPC). This rating is now an indicative rating and is based on the best available information.
The rating has been downgraded on account of information risk.

About the Company


­Kaleshwaram Irrigation Project Corporation Ltd (KIPCL) was incorporated on August 05, 2016 by the Government of Telangana (GoT) as a 100 percent owned entity to implement the Project. It is a special purpose vehicle (SPV) created to construct the Kaleshwaram lift irrigation project, it is one of the world’s largest lift irrigation project undertaken by Telangana state. The project envisages creating potential to irrigate 18.25 lakh acres of land and stabilize the existing reservoirs which can further irrigate 18.83 lakh acres ayacut. The project is further sub-divided to provide 169 thousand million cubic feet (TMC) Irrigation Water Supply, 10 thousand million cubic feet (TMC) of drinking water to the villages’ en-route, 30 TMC of drinking water to twin cities of Hyderabad & Secunderabad and 16 TMC of water for Industrial use. The entireprojecthasbeen dividedintoseven linkseach of which willconvey water to differentcommand areas through 21 pump houses covering the Project area under the 13 districts in Telangana.

Analytical Approach

To arrive at the rating Acuité has considered the standalone business and financial risk profile of KIPL and also factored in the support by Government of Telangana(GOT) by the way of unconditional and irrecocaable guarentee for timely payment of both interest and principal of the rated debt. The analytical approach has been revised from a Credit Enhancement(CE) to a standalone rating with a notch up based on support from Government of Telangana(GOT). This is to bring analytical approach in line with Acuité's revised rating criteria w.r.t credit enhancement. 

Standalone(Unsupported) Rating:

ACUITE BB-/Stable
 
About the Group
­
 
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 an 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 has 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."
 
Material Covenants
­None
 
Liquidity Position

­No information provided by the issuer / available for Acuite to comment upon.
 
Outlook
­Not applicable
 
Other Factors affecting Rating
­None
 

Particulars Unit FY 20 (Actual) FY 19 (Actual)
Operating Income Rs. Cr. 0.00 0.00
PAT Rs. Cr. (1.73) (1.17)
PAT Margin (%) 0.00 0.00
Total Debt/Tangible Net Worth Times 7.25 7.08
PBDIT/Interest Times (86.20) 0.00
Status of non-cooperation with previous CRA
­None
 
Any other information
­None
 
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
• Group And Parent Support: https://www.acuite.in/view-rating-criteria-47.htm
• Infrastructure Sector: https://www.acuite.in/view-rating-criteria-51.htm
Note on Complexity Levels of the Rated Instrument
https://www.acuite.in/view-rating-criteria-55.htm
 

Date Name of Instruments/Facilities Term Amount (Rs. Cr) Rating/Outlook
17 Aug 2021 Term Loan Long Term 4657.95 ACUITE A+ (CE) | Stable (Reaffirmed)
Proposed Bank Facility Long Term 0.62 ACUITE A+ (CE) | Stable (Reaffirmed)
Term Loan Long Term 14093.40 ACUITE A+ (CE) | Stable (Reaffirmed)
22 May 2020 Term Loan Long Term 14093.40 ACUITE A+ (CE) | Stable (Assigned)
Proposed Bank Facility Long Term 0.62 ACUITE A+ (CE) | Stable (Assigned)
Term Loan Long Term 4657.95 ACUITE A+ (CE) | Stable (Assigned)
­

Lender’s Name ISIN Facilities Date Of Issuance Coupon Rate Maturity Date Quantum (Rs. Cr.) Complexity Level Rating
Not Applicable Not Applicable Proposed Long Term Bank Facility Not Applicable Not Applicable Not Applicable 0.62 Simple ACUITE BBB+ | Downgraded | Issuer not co-operating*
Rural Electrification Corporation Ltd. Not Applicable Term Loan Jul 13 2019 10.90 Jun 30 2034 4657.95 Simple ACUITE BBB+ | Downgraded | Issuer not co-operating*
Rural Electrification Corporation Ltd. Not Applicable Term Loan Jul 13 2019 10.90 Jun 30 2034 14093.43 Simple ACUITE BBB+ | Downgraded | Issuer not co-operating*
­

Contacts
Analytical Rating Desk
About Acuité Ratings & Research
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