| Suzlon Global Services Limited | ||
| Rating Withdrawn | ||
| Rating Action | ||
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| & A prefix of 'Provisional' indicates that the rating centrally factors in the strength of specific structures and is contingent upon occurrence of certain steps or execution of certain documents by the issuer, as applicable, without which the rating would either have been different or not assigned ab initio. This is in compliance with a May 6, 2015, directive titled ‘Standardizing the term, rating symbol, and manner of disclosure with regards to conditional/provisional/in-principle ratings assigned by credit rating agencies' by Securities and Exchange Board of India (SEBI) and an April 27, 2021, circular ‘Standardizing and Strengthening Policies on Provisional Rating by Credit Rating Agencies (CRAs) for Debt Instruments’ by SEBI. | ||
| 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Detailed Rationale CRISIL Ratings has withdrawn its rating on the non convertible debentures Suzlon Global Services Ltd (SGSL) at the company’s request. This is in line with CRISIL Ratings’ withdrawal policy |
Analytical Approach CRISIL Ratings has analysed SGSL on a standalone basis as cashflows of the OMS business will be ringfenced for servicing NCD holders basis a well-defined waterfall mechanism. All revenues and receivables of SGSL are to be deposited in a master escrow account and post meeting all payment obligations under waterfall mechanism, the balance proceeds would be deposited in surplus account. Funds in Surplus Account will be subject to mandatory cash sweep (MCS) on quarterly basis, as per MCS Conditions. Any funds remaining post MCS can be transferred to Distribution Account.
Further, the structure is also expected to be bankruptcy remote from the other entities in the group. |
Additional disclosures for the provisional rating The provisional rating is contingent upon execution of transaction documents including signed term sheet in line with the terms assessed. The provisional rating shall be converted into a final rating after receipt of transaction documents duly executed and on confirmation of completion of pending steps within 90 days from the date of issuance of the proposed NCDs.
The final rating assigned after conversion shall be consistent with the available documents and completed steps. In case of non-completion of steps or non-receipt of the duly executed transaction documents within the specified timelines, the rating committee of CRISIL Ratings may grant an extension of up to another 90 days in line with its policy on provisional ratings. |
Rating that would have been assigned in the absence of the pending documentation In the absence of pending steps/documentation considered while assigning the provisional rating as mentioned above, CRISIL Ratings would have assigned rating as CRISIL BBB-/Watch developing (Withdrawn). |
Risks associated with the provisional rating: The 'Provisional' prefix indicates that the rating is contingent on occurrence of certain steps or execution of certain documents by the issuer, as applicable. If the documents received and/or completion of steps deviate significantly from the expectations, CRISIL Ratings may take an appropriate action, including placing the rating on watch or changing the rating/outlook, depending on the status of progress on a case to case basis. In the absence of the pending steps / documentation, the rating on the instrument would not have been assigned ab initio. |
About the Company SGSL is a Suzlon group company and a wholly owned subsidiary of SEL, which is one of the largest manufacturers of wind turbine generators in India. SGSL provides O&M services for the generators supplied by SEL. SGSL enters into OMS contracts with customers for a tenor of 5 to 10 years with an option for renewal of the same. The company has an operating fleet size of around 13.4 GW (as on Mar’23). |
Key Financial Indicators
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Any other information: Not applicable |
Note on complexity levels of the rated instrument: |
Annexure - Details of Instrument(s)
*Yet to be placed |
| Annexure - Rating History for last 3 Years | ||||||||||||||||||||||||||||||||||||||||||||||||||||
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| All amounts are in Rs.Cr. | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Criteria Details
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