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

By: |
October 22, 2019 4:16 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.

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, Check out latest IPO News, Best Performing IPOs, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1Look forward to working with new US administration on STEM skills gap: Nasscom
2MediaTek unveils 6nm Dimensity 1200, Dimensity 1100 5G-ready SoCs: features, availability and other details
3November YoY growth in bank credit to MSEs declines marginally from October YoY, shows RBI data