The credit rating agency has assigned short-term rating of ‘IVR A1+’ for the bank loan facilities of the company.

Infomerics Rating said that the rating continues to draw comfort from the strong promoters and experienced management, diversified revenue profile, strong order book position, low counterparty risk due to its reputed clientele and comfortable debt protection metrics and financial risk profile during FY2023 and 9MFY24.

However, these strengths are partially offset by exposure to foreign exchange risk.

The ‘stable’ outlook indicates a low likelihood of rating change over the medium term. IVR believes RL will continue to benefit from its operational track record in the business, its parentage with Indian Railways and continuous inflow of orders.

The industry outlook is improving as economies transit from fossil fuel-based energy to renewable energy sources, green infrastructure emerges as an important instrument for the overarching goal of the transport framework.

RITES is a multi-disciplinary consultancy organization operating in the fields of transport infrastructure and related technologies. RL is a Nav Ratna, Public Limited company, with 72.20% shareholding held by the Government of India.

The scrip had advanced 1.84% to end at Rs 760 on the BSE on Friday.