Credit rating agency, ICRA has reaffirmed LAA+ rating assigned to the fund based facility aggregating to INR 2.5 billion and A1+ rating to the non fund based facility aggregating to INR 44.5 billion (enhanced from INR 20 billion) of Thermax. The long term rating carries a stable outlook.

The ratings continue to reflect the company`s strong market position in the energy segment business; currently strong order book position and a very comfortable financial risk profile.

The company derives sustainable competitive strengths in its main business segments, energy and environment, from its technological strengths; established track record and the ability to offer turnkey solutions, as reflected in its healthy closing order-book position of about INR 63.31 billion as on June 30th 2010.

Also, with the technology license agreement for utility range of boilers in place with Babcock & Wilcox, USA in March 2008 followed by incorporation of JV2 with Babcock & Wilcox, USA in March 2010 for domestic manufacture of super-criticalboilers, the company is now expected to benefit from favourable demand potential for utility scale power plants.

(Sourced from IRIS)