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Indian Tractor Industry – Monthly Update: February 2017        Indian Poultry Industry: Poultry industry profitability expected to improve sharply in FY2017 majorly benefitting from lower soymeal prices        Public Announcement for Buyback of Equity Shares        Aggressive bidding for Rewa Ultra Solar Project leads to a significant improvement in cost competitiveness of solar tariff; viability rests on long debt tenure, scale benefits and risk mitigation measures        Indian Retail Non-Banking Finance Market: Currency Crunch to impact near term business growth and asset quality of Retail NBFCs: H1FY2017 Performance Update and Industry Outlook        Delay in resumption of imports by Iran likely to hinder recovery in Basmati rice exports from India: ICRA        Indian Mortgage Finance Market Update for H1FY2017: Affordable housing segment to remain key growth driver; overall housing loan growth likely to witness near term moderation Performance Review of Housing Finance Companies and Industry Outlook        WPI inflation surges to higher-than-expected 5.2% in Jan 2017 led by commodity prices, unfavourable base effect        Report on Housing Finance Companies: Key financial and operational statistics of the housing finance companies extracted from ICRA’s databases, presented in a format convenient to read and understand        Indian Automobile Industry – Two Wheelers: Emerging Out Of Demonetization Woes: Monthly Update       
 
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Indian Poultry Industry: Poultry industry profitability expected to improve sharply in FY2017 majorly benefitting from lower soymeal prices
Indian Tractor Industry – Monthly Update: February 2017
Aggressive bidding for Rewa Ultra Solar Project leads to a significant improvement in cost competitiveness of solar tariff; viability rests on long debt tenure, scale benefits and risk mitigation measures
Indian Retail Non-Banking Finance Market: Currency Crunch to impact near term business growth and asset quality of Retail NBFCs: H1FY2017 Performance Update and Industry Outlook
More...
 
PROJECT FINANCE RATING

The envisaged demand for private-sector investments in infrastructure projects, particularly in the energy and road sectors, suggests considerable potential for adequately structured project finance transactions. Growth in such transactions would also be driven by the inability of many potential project sponsors to implement such capital intensive and highly leveraged projects on their balance sheets, without having their own credit risk profile materially impacted. Project financing usually involves setting up of a Special Purpose Vehicle (SPV), bound by a contractual matrix to various project participants, which raises debt and services it from its own cash flows, without recourse to its sponsors. ICRA's Rating approach emphasises the importance of carefully assessing the risks that characterise such transactions and suitably structuring the projects to mitigate the risks. It may be noted that if a project entity proposes to issue a debt instrument that requires a Credit Rating, ICRA would assign a Credit Rating on its conventional Credit Rating scale. The Project Finance Rating (PFR) service is essentially a project risk assessment exercise (with a separate PFR Rating scale) that may be useful to the project entity and its  lenders/investors. ICRA would also provide a detailed assessment report on the project without assigning a formal PFR if lenders/project entities require only that. The Rating methodology involves an assessment of three broad areas:

Sponsor strength
Project risks
Cash flow adequacy

The Benefits

For lenders, typically financial intermediaries like banks and financial institutions, ICRA's PFRs would:

Facilitate informed decision-making
Provide an independent and reliable second opinion
Assist in risk pricing
Facilitate portfolio risk management
Help meet specific investment objectives

For borrowers, ICRA's PFRs may help to:

Increase the comfort level with prospective/existing lenders and enhance marketability to various lenders
Reduce the time involved in obtaining loan approval

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