DPE pushes public sector enterprises to strengthen credit profiles for cheaper access to domestic, global debt markets
New Delhi, September 16
The Department of Public Enterprises has pushed Maharatna and Navratna Central Public Sector Enterprises to strengthen their credit profiles and engage more closely with rating agencies to improve access to domestic and global debt markets at competitive rates.
At an interactive workshop organised by DPE in collaboration with the Standing Conference of Public Enterprises (SCOPE) on Wednesday, senior officials highlighted the role of objective credit ratings in benchmarking the creditworthiness of public sector companies and helping them secure cost-effective funding.
DPE Secretary K Moses Chalai highlighted the operational performance of CPSEs and their contribution to India's economic growth while also pointing to the opportunities and challenges faced by public sector companies.
He emphasised the need to make credit rating processes "more transparent, efficient, and aligned with the realities of the Indian context," according to the Finance Ministry release.
The workshop brought together senior executives from Maharatna and Navratna CPSEs and representatives of domestic and international credit rating agencies to discuss rating methodologies, risk pricing and debt-market dynamics.
DPE Joint Secretary Vasundhara Upmanyu said rating agencies provide an objective and independent assessment of financial strength, risk and credibility, underscoring the need for sustained engagement between CPSEs and credit assessors.
Discussions also focused on transparent disclosures and capital structure optimisation, areas that can influence the credit profile and borrowing costs of companies seeking funds from debt markets.
Technical presentations were made by CareEdge Global IFSC Limited, CARE Ratings Limited, CRISIL Ratings Limited, ICRA Ratings Limited and Infomerics Valuation and Rating Limited.
According to the ministry, closer engagement with rating agencies can help CPSEs strengthen financial market transparency, improve credit-risk assessment and support regulatory compliance, while also providing investors with information needed to evaluate borrowing entities.
The workshop was attended by more than 80 senior finance executives, including Directors (Finance), Executive Directors and General Managers from Maharatna and Navratna CPSEs.
The initiative is part of DPE's continuing capacity-building efforts aimed at strengthening the management and financial preparedness of central public sector enterprises.
— ANI
Leave a comment