| Maple Renewable Power Private Limited | ||||
| Rating upgraded to 'CRISIL BBB- / Stable' | ||||
| Rating Action | ||||
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| 1 crore = 10 million | ||||
| Refer to Annexure for Details of Instruments & Bank Facilities |
Detailed Rationale CRISIL Ratings has upgraded its rating on the long-term bank facilities of Maple Renewable Power Private Limited (Maple) to 'CRISIL BBB-/Stable’ from ‘CRISIL BB-/Stable’.
CRISIL Ratings has also withdrawn its rating on Rs 26.16 crore of bank facilities as the term loans were repaid. The rating withdrawal is in line with CRISIL Ratings’ policy on withdrawal of ratings
The upgrade reflects a belief that the liquidity of Maple will remain healthy, with a comfortable debt service coverage ratio (DSCR). It also factors in the timely support expected from the parent Leap Green Energy Pvt Ltd (LGEPL) in case of any cash flow mismatch.
The rating considers diversified clientele, low counterparty credit risk, comfortable DSCR over the medium term, and moderate cash flow support from the parent. These strengths are partially offset by subdued operational performance and exposure to inherent risk of variability in wind speed and pattern. |
Analytical Approach CRISIL Ratings has made a standalone assessment of Maple. |
Key Rating Drivers & Detailed Description Strengths: Maple has undertaken power purchase agreements (PPAs) with industrial and commercial customers under the group captive model for tenure of 9-12 years at competitive tariffs, as compared to the grid tariff. The entire capacity has been tied-up with around 18 customers, providing revenue visibility and resulting in lower customer concentration and offtake risks. Counterparty credit risk for the company remains comparatively low.
DSCR remains supported by lower debt obligation over the medium term, as compared to earlier fiscals. Hence, DSCR has been adequate despite subdued operational performance resulting in lower cash accrual. It is further supported by the debt service reserve account (DSRA) of Rs 2.7 crore and cash of ~ Rs. 5.2 crore as on December 31, 2021, -- sufficient to meet almost six months of debt obligation.
The holding company, LGEPL, which has guaranteed the facilities of Maple, had refinanced its existing debt in August 2019 through external commercial borrowing (ECB) from its parent -- AIRRO (Mauritius) Holdings II. This ECB has a tenure of six years with interest moratorium of two years and is repayable from September 2021, while the principle moratorium is for four years and is repayable from September 2023 onwards. Consequently, debt servicing requirement at the holding company in the near-medium term remains low. Further, LGEPL has provided an undertaking, which states that sufficient liquidity will be maintained within the company for prioritising its debt obligation.
Weaknesses:
Operational performance remained modest in fiscals 2020 and 2021 due to weak wind pattern and low grid availability. Average plant load factors (PLFs) for these two fiscal have been significantly lower than P-90 levels of 19.89%. While PLF should marginally improve in fiscal 2022, it may still remain lower than the P-90 level. Ability to improve PLF levels will continue to be a key monitorable.
Cash flow of wind power projects is highly sensitive to PLF, while also being impacted by other factors such as operating cost and interest rate. PLF is inherently unpredictable as it depends on wind patterns and any unfavourable deviation in wind speed and pattern will significantly reduce PLF, thereby impairing debt servicing ability. |
Liquidity: Adequate Maple has a DSRA of Rs 2.7 crore and cash balance of Rs 5.2 crore as on December 31, 2021. It also has banked power units, part of which will be realised in March 2022. Debt repayment and interest obligation for fiscal 2023 stand at around Rs 12 crore, which should be met by operating cash flow and supported by current liquidity and proceeds from realisation of the banked power units. |
Outlook: Stable Maple will continue to benefit from diversified clientele, low counterparty credit risk, comfortable DSCR, and moderate cash flow support from the parent. |
Rating Sensitivity factors Upward factors:
Downward factors:
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About the Company Maple (a part of the Leap Green group) was incorporated on July 13, 2011. It is an SPV set up to install and operate a 46.2-megawatt, wind-based power plant in Tamil Nadu. The company generates and sells power generated from renewable sources of energy. Maple has undertaken PPAs of 9-12 years, with industrial and commercial establishments in Tamil Nadu. LGEPL is the holding company of Maple and AIRRO (Mauritius) Holdings II the ultimate holding company. |
Key Financial Indicators(standalone)
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Any other information: Not applicable |
| Note on complexity levels of the rated instrument: CRISIL Ratings' complexity levels are assigned to various types of financial instruments. The CRISIL Ratings' complexity levels are available on www.crisil.com/complexity-levels. Users are advised to refer to the CRISIL Ratings' complexity levels for instruments that they consider for investment. Users may also call the Customer Service Helpdesk with queries on specific instruments. |
Annexure - Details of Instrument(s)
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| Annexure - Rating History for last 3 Years | ||||||||||||||||||||||||||||||||||||||||||||||||||||
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| All amounts are in Rs.Cr. | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Annexure - Details of Bank Lenders & Facilities | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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This Annexure has been updated on 01-Mar-2022 in line with the lender-wise facility details as on 02-Aug-2021 received from the rated entity.
Criteria Details
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