The Hindu Business Line : ICRA assigns `high safety' rating to CPCL bonds

ICRA has assigned `LAA' rating, indicating `high safety,' to the Rs 750-crore bonds programme of Chennai Petroleum Corporation Ltd (CPCL). It has also given `A1+' rating, indicating highest safety in the short term, to its Rs 50-crore commercial paper/short-term debt programme. The `MAA' rating, indicating high safety, assigned to the fixed deposits programme has also been reaffirmed.

CPCL's financial risk is relatively higher due to higher gearing (1.53 times as of March 31, 2003) and moderate coverage levels (net cash accruals/total debt at 19.7 per cent during 2002-03). The gearing level would continue to be high over the medium term as the new projects get completed.

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