Greenko Solar, Neerg Energy to be most affected on discom’s non-payment of dues

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Published: October 22, 2019 4:16:29 AM

Greenko Solar (Mauritius) (US Dollar notes rated BB-) and Neerg Energy (US Dollar notes rated B+) are likely to be affected the most as per the test conducted by Fitch to measure the liquidity strength of its rated renewable companies on the basis of adjusted cash flows from operations (CFOs) against net expenses.

Greenko Solar, Neerg Energy, discom, non payment of due, Andhra Pradesh electricity distribution company, Andhra Pradesh, renewable energy The cash flow from operations considers zero collections from Andhra Pradesh in the financial year ending March 2020 (FY20).

Greenko Solar (Mauritius) and Neerg Energy are likely to be affected the most due to continued delay in payments by state-owned Andhra Pradesh electricity distribution company (discom), among the group of renewable companies rated by Fitch Ratings.

Greenko Solar (Mauritius) (US Dollar notes rated BB-) and Neerg Energy (US Dollar notes rated B+) are likely to be affected the most as per the test conducted by Fitch to measure the liquidity strength of its rated renewable companies on the basis of adjusted cash flows from operations (CFOs) against net expenses.

“The cash flow from operations considers zero collections from Andhra Pradesh in the financial year ending March 2020 (FY20). We stress the CFO further by assuming additional delays in payments – in multiples of 30 days – from other state-owned counterparties for which receivable days were significantly higher than 60 at FYE19,” Fitch said in a report on Indian renewable companies impacted by non-payment of dues by the AP discom.

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