Crisil upgrades Acme Solar’s long-term rating; bank facility enhanced to ₹1,000 crore

Crisil Ratings has upgraded its credit rating on the long-term bank facilities of Acme Solar Holdings Ltd (ASHL) worth ₹1,000 crore to ‘AA-/Stable’ from ‘A+/Positive’. This upgrade is expected to reduce the company's cost of debt across its projects.

The upgrade by Crisil is based on several factors, including growth in ACME Solar’s operating portfolio and a solid execution track record. The company has stabilised its assets in a timely manner and refinanced its projects to lower the cost of debt, which has improved its operating cash flows. This financial strategy is anticipated to support the company's future equity needs and ensure timely project execution.

ACME Solar’s liquidity profile is strong, with consolidated free cash and cash equivalents exceeding ₹1,400 crore, of which more than ₹800 crore is at the standalone level. This liquidity is crucial for executing a portfolio of 2.84 GW Solar FDRE, Hybrid, and Wind Projects, along with a 550 MWh standalone Battery Energy Storage System (BESS) project over the next two to three years, the ratings agency noted. The company’s capital allocation strategy aims to expand its renewable energy capabilities while maintaining financial stability.

Diverse asset portfolio

The upgrade also reflect ACME Solar’s track record in developing and operating renewable power assets, supported by a diverse asset portfolio that includes solar, wind, storage, FDRE, and hybrid solutions, with an operational capacity of 2,890 MW. This diversification helps mitigate risks and positions ACME Solar as a significant player in the renewable energy sector.

ACME Solar’s in-house Engineering, Procurement, and Construction (EPC) and Operations and Maintenance (O&M) divisions enable the company to manage projects internally, ensuring they are delivered in a time and cost-effective manner. This operational approach supports the company’s industry-leading Capacity Utilization Factors (CUF) and operating margins.

The rating upgrade is expected to positively impact ACME Solar’s future projects and financial strategies. A stronger credit rating may allow the company to access capital on more favorable terms.

Disclaimer: This article was generated using AI tools and has undergone editorial review for clarity and coherence.