New Delhi: Hindustan Copper Limited (HCL) has received a major upgrade in its long-term credit rating from ICRA Limited, with the rating agency raising its rating from [ICRA]AA+ (Stable) to the highest rating of [ICRA]AAA (Stable).
ICRA has also reaffirmed HCL’s short-term credit rating at [ICRA]A1+.
The rating action covers HCL’s long-term bank facilities and other financial instruments, while the short-term rating applies to its commercial paper and other short-term facilities. The upgrade reflects the company’s financial strength and credit profile.
HCL’s Long-Term Credit Rating Upgraded to [ICRA]AAA
ICRA has upgraded Hindustan Copper’s long-term rating from [ICRA]AA+ (Stable) to [ICRA]AAA (Stable).
The [ICRA]AAA rating represents ICRA’s highest long-term credit rating category and indicates a very strong degree of safety regarding timely servicing of financial obligations.
The outlook on the rating has been maintained at Stable.
At the same time, HCL’s short-term rating has been reaffirmed at [ICRA]A1+, indicating continued strength in its short-term credit profile.
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Details of HCL’s Rated Financial Instruments
The rating action covers multiple long-term and short-term facilities of Hindustan Copper.
The instrument-wise details are:
- Long-term fund-based – Term Loan: ₹150 crore; upgraded from [ICRA]AA+ (Stable) to [ICRA]AAA (Stable)
- Long-term fund-based – Cash Credit: ₹350 crore; upgraded from [ICRA]AA+ (Stable) to [ICRA]AAA (Stable)
- Short-term non-fund-based – Others: ₹300 crore; reaffirmed at [ICRA]A1+
- Long-term non-fund-based – Others: ₹500 crore; upgraded from [ICRA]AA+ (Stable) to [ICRA]AAA (Stable)
- Long-term/Short-term Unallocated Limits: ₹800 crore; long-term rating upgraded to [ICRA]AAA (Stable) and short-term rating reaffirmed at [ICRA]A1+
- Commercial Paper: ₹100 crore; short-term rating reaffirmed at [ICRA]A1+
The rated instruments listed above have a combined rated amount of ₹2,200 crore.
₹2,100 Crore Long-Term Facilities and ₹100 Crore Commercial Paper
The rating announcement covers ₹2,100 crore of long-term bank facilities and related limits, along with a ₹100 crore commercial paper programme, taking the total rated amount listed in the instrument-wise schedule to ₹2,200 crore.
The upgrade of the long-term facilities to [ICRA]AAA (Stable) strengthens HCL’s credit profile, while the reaffirmation of [ICRA]A1+ maintains the company’s highest short-term rating category.
What the [ICRA]AAA Rating Means for Hindustan Copper
The upgrade to [ICRA]AAA (Stable) places HCL in ICRA’s highest long-term credit rating category.
A rating at this level indicates a very high degree of safety regarding timely servicing of financial obligations and a very low level of credit risk, according to ICRA’s rating framework.
For HCL, the improved rating can support its access to institutional funding and strengthen its position when raising debt or arranging financial facilities, subject to prevailing market conditions.
The higher rating may also support more favourable borrowing terms, although actual financing costs will depend on market conditions and the specific financing instrument.
Short-Term Rating Reaffirmed at [ICRA]A1+
Alongside the long-term upgrade, ICRA has reaffirmed Hindustan Copper’s short-term credit rating at [ICRA]A1+.
The rating applies to the company’s ₹100 crore Commercial Paper programme as well as the specified short-term non-fund-based and unallocated facilities in the rating schedule.
The reaffirmation indicates that HCL continues to maintain a strong short-term credit profile.
Credit Rating Upgrade Strengthens HCL’s Financial Profile
The upgrade from [ICRA]AA+ (Stable) to [ICRA]AAA (Stable) marks a significant improvement in Hindustan Copper’s long-term credit rating.
Together with the reaffirmed [ICRA]A1+ short-term rating, the latest rating action provides a positive assessment of the company’s ability to meet its financial obligations and supports its overall credit standing.
The development is also relevant for HCL’s future financing requirements as the company continues its operations and expansion in the copper sector.
About Hindustan Copper Limited
Hindustan Copper Limited (HCL) is a Central Public Sector Enterprise under the Ministry of Mines, Government of India. The company is engaged in copper mining and related activities and is an important part of India’s domestic copper industry and mineral resource ecosystem.
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