This rating upgrade is expected to help ACME Solar reduce its cost of debt across the company and its subsidiaries

ACME Solar Holdings has been assigned an “ICRA AA-/Stable” rating for its long-term non-fund-based bank facilities. This has been the highest rating the company has received so far from any credit rating agency.

As per Icra, the rating reflects ACME’s diversified portfolio across multiple locations and off-takers, primarily central agencies as well as strong revenue visibility backed by long-term power purchase agreements. The agency also cited optimal generation performance, comfortable debt coverage metrics, and the company’s proven record in developing and stabilising renewable energy projects.

The rating also takes into account the improved financial profile following ACME’s recent initial public offering and the availability of equity funding to support under-construction projects.