ICRA revises GE Power India’s outlook to negative from stable

ICRA has reaffirmed A-plus rating on GE Power India Ltd (GEPIL) but said the outlook revision to negative from stable on the bank lines is driven by deterioration in credit profile on account of losses incurred in Q1 FY2022.

The losses were primarily attributable to the cost overrun in National Hydroelectric Power Corporation’s Subansiri project where GEPIL is a contractor along with hardening of commodity prices amid Covid-19 pandemic-related disruptions.

ICRA also noted the company’s elevated funding requirements because of increase in debtor levels (including retention money), translating into increased reliance on working capital debt.