| Amplus Sun Solutions Private Limited | ||||
| Rating Reaffirmed | ||||
| Rating Action | ||||
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| Note: None of the Directors on CRISIL Ratings Limited’s Board are members of rating committee and thus do not participate in discussion or assignment of any ratings. The Board of Directors also does not discuss any ratings at its meetings. | ||||
| 1 crore = 10 million | ||||
| Refer to Annexure for Details of Instruments & Bank Facilities |
Detailed Rationale CRISIL Ratings has reaffirmed its ‘CRISIL AA-/Stable’ rating on the long-term bank facilities of Amplus Sun Solutions Private Limited (ASSPL). ASSPL is a special purpose vehicle (SPV) fully owned by Amplus Energy Solutions Pte Ltd (AESPL), and operates a 75 megawatt-peak (MWp) solar power plant in Bhiwani, Haryana. Furthermore, CRISIL Ratings has withdrawn its rating on long term bank loan facilities aggregating to Rs.6.98 crore at the request of the company and upon receipt of requisite documents. The withdrawal is in line with CRISIL Ratings’ policy on withdrawal of ratings.
The rating factors in the healthy operational performance of the solar plant with plant load factor (PLF) above P-90 levels and resultantly sustenance of healthy liquidity position of the company. The rating also considers the strong managerial and financial support the company is likely to receive from Gentari Sdn Bhd, which is a 100% subsidiary of Petroliam Nasional Berhad, Malaysia (PETRONAS; foreign currency rating of 'A-/Stable' and local currency rating of A/Stable by S&P Global Ratings), and, moderate offtake and counterparty credit risk, with the entire capacity tied up with Haryana Power Purchase Centre (HPPC), that has moderate credit risk profile. Furthermore, the rating reflects the company’s comfortable financial risk profile, driven by adequate debt service coverage ratio (DSCR).
These strengths are partially offset by exposure to single asset concentration risk, technological risk associated with solar plants, and dependence on favorable solar irradiation for power generation. |
Analytical Approach CRISIL Ratings has considered the standalone business and financial risk profiles of ASSPL and used its criteria for rating solar power projects. Furthermore, CRISIL Ratings has applied its parent notch-up framework to factor in the support available to ASSPL from the ultimate parent, PETRONAS (through PETRONAS’ wholly owned subsidiary Gentari).
Treatment of non-convertible debentures (NCDs) and optionally convertible debentures (OCDs) from the parent, Amplus Energy Solutions Pte Ltd (AESPL; wholly owned step-down subsidiary of PETRONAS): CRISIL Ratings has not factored in payment of interest and principal repayment or redemptions in the DSCR calculations in line with the earlier approach, as these are subordinate to bank debt. These instruments carry a rate of interest of 10-13% and any redemption or interest payment shall be post meeting restrictive covenants and with lender approval. |
Key Rating Drivers & Detailed Description Strengths: Strong financial, operational and managerial support from the ultimate parent The company receives strong operational and managerial support from Gentari Sdn Bhd, which is a 100% subsidiary of PETRONAS. The propensity to support AESPL by PETRONAS through Gentari Sdn Bhd remains high due to PETRONAS’s strategic focus towards increasing renewable energy business and the healthy economic incentives from the asset, as reflected in comfortable DSCRs of the asset over the tenure of the loan. Thereby, CRISIL Ratings understands that AESPL should continue to receive any need-based support from its ultimate parent PETRONAS, for timely servicing of debt.
Healthy operational track record of project ASSPL's 75-megawatt peak (MWp) power project has been operational for around two and a half years with average PLFs consistently above P-90 generation levels over this period. PLFs (DC) were 16.16% and 16.59% in CY 2023 and CY 2022, respectively. The plant should continue to operate at P90 level given the healthy operational track record, resulting in stable revenue. However, operational performance and variance in PLF will remain key rating sensitivity factors.
Low offtake and counterparty credit risks ASSPL has entered into power purchase agreements (PPAs) with HPPC, having tenure of 25 years and at tariff of Rs 2.48 per unit. HPPC has been making payments largely in time. Moreover, the long tenure of debt, of around 18 years, coupled with expectation of generation at P-90 levels results in adequate DSCR.
ASSPL has filed a petition for upward tariff revision with APTEL and the case is currently sub-judice. ASSPL has currently been funded by external bank debt to parent funds in the ratio of 40:60. In case of favorable order by APTEL, the company may draw additional bank loan, which may be utilized to repay portion of existing parent loan, without materially altering the DSCR’s from current levels. The order of the APTEL and sustenance of ADSCRs along expected levels will remain key monitorable.
Weaknesses: Technological risks associated with solar power plants and dependence on favourable solar irradiation for power generation Solar power generation depends on irradiation levels around the plant's location. Also, changes in the average temperature or performance of solar modules may affect the company's power generation and lead to higher-than-expected degradation in solar panels. Given that cash flow of a solar power project is highly sensitive to variation in PLF, these factors could impair the debt servicing capability of solar projects.
Concentration risks on account of single asset operations The company’s generating assets consist of a single 75 MWp plant located in Haryana exposing the company to location concentration risk. However, the risk is managed by maintaining sufficient liquidity through debt service reserve account (DSRA) equivalent to six months of debt servicing. |
Liquidity: Strong Cash accrual (available for debt servicing) is expected at around Rs 18 crore each in calender year 2024 and 2025, against yearly debt obligation of Rs 14 crore. Additionally, DSRA requirement equivalent to two quarters of debt servicing (around Rs 7.35 crore for 2023) is maintained in the form of a bank guarantee. Furthermore, as on April 30, 2024, cash and equivalent were healthy at around Rs 11.03 crore. Healthy accrual, financial flexibility from being a part of PETRONAS group and DSRA of two quarters will ensure adequate liquidity to withstand any delay in payment from off-takers or any variation in PLF levels. |
Outlook: Stable ASSPL will continue to generate healthy cash accrual, backed by long-term PPAs and healthy PLFs. Furthermore, it will remain strategically important to PETRONAS and receive strong managerial, operational and financial support from its ultimate parent PETRONAS. |
Rating Sensitivity Factors Upward Factors:
Downward Factors:
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About the Company ASSPL operates a 75-MWp ground-mounted solar power plant in Bhiwani, Haryana. It was operationalized in January 2021. It has entered into 25-year PPA with HPPC.
ASSPL is a 100% subsidiary of AESPL, which in turn is a 100% step-down subsidiary of Gentari Sdn Bhd (Gentari). Established in September 2022, Gentari is a 100% subsidiary of PETRONAS and operates across three segments, including renewable energy, hydrogen and green mobility. It has plans to grow its renewable asset portfolio to 30-40 gigawatt (GW) by 2030. |
Key Financial Indicators
*Includes NCDs and OCDs from the parent AESPL |
Any other information: Not Applicable |
Note on complexity levels of the rated instrument: |
Annexure - Details of Instrument(s)
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| Annexure - Rating History for last 3 Years | |||||||||||||||||||||||||||||||||||||||
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| All amounts are in Rs.Cr. | |||||||||||||||||||||||||||||||||||||||
| Annexure - Details of Bank Lenders & Facilities | ||||||||||||
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Criteria Details
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