SE Forge exits CDR and receives Investment Grade rating from CARE

Suzlon Group has announced that SE Forge Limited (SEFL) has exited the Corporate Debt Restructuring (CDR). Separately, the rating agency CARE has also assigned investment grade ratings, a BBB- rating for its long term bank facilities (including working capital) and A3 for its short term  bank facilities.

Below schedule gives the facility wise rating:

SE Forge has achieved turnaround performance in the first nine months with sales revenue growth  of more than 90% as compared to the corresponding period previous year. Company has improved its operational performance significantly and achieved profitability during the period.

The Company has a robust order book position and has managed to procure orders from new customers in both wind and non wind sectors. SE Forge continues to demonstrate strong revival and is moving forward on a growth path.

The investment grade rating is on the back of an improvement in SEFL’s operational performance and greater revenue visibility. SEFL's ability to improve its scale of operations, diversification of its customer base and garner need-based financial support from parent company have been taken into account by the rating agency for assigning the investment grade rating.

Speaking on the occasion, Mr. Kirti Vagadia, Chief Financial Officer, Suzlon Group said: “The exit from the CDR as well as the investment grade rating for SE Forge gives us the required financial flexibility to capture the increased business opportunities at SE Forge and to reduce its interest cost significantly. We are thankful to our lenders for their continued faith in us. Exiting from CDR arrangement within the envisaged time frame marks a significant step forward for SEFL.

The rating and the CDR exit demonstrates improvement in the liquidity profile, scale of operations and  profitability of SE  Forge.  This  clearly highlights that  SE Forge  is on  a path  of resurgence   and demonstrates our restored credibility on the back of significant debt reduction, strong industry outlook and our order-book and pipe-line. Government’s clear thrust on renewables and our constant efforts to lower the cost of energy has resulted into a favorable business outlook for the sector.”