Gujarat Gas up 3% as Crisil upgrades Co’s long-term bank facilities

Shares of Gujarat Gas Limited (GGL) climbed 4 per cent to Rs 232 on the BSE on Friday after the rating agency Crisil upgraded its rating on the long-term bank facilities of the company to ‘AA+’ with a ‘stable’ outlook from ‘AA’ with a ‘positive’ outlook.

In its rating rationale, Crisil said it believes GGL will continue to depict a steady growth in operating performance, backed by healthy volume growth and stable realisation levels.

“The upgrade reflects CRISIL’s expectations of an improvement in GGL’s credit profile over the medium term. Sustainable improvement in cash accruals is expected to improve GGL’s financial risk profile notwithstanding the sizeable capital expenditure (capex) programme,” Crisil said.