CRISIL has reaffirmed 'A+/positive' rating on the bank facilities and commercial paper programme of  Ashoka Buildcon (ABL).

The rating continue to reflect ABL's established track record in executing build-operate-transfer (BOT) road projects, and its sound financial risk profile, marked by a healthy net worth, low gearing, and healthy debt protection metrics. These rating strengths are partially offset by ABL's high exposure to under-implementation BOT projects, and its working-capital intensive operations.

CRISIL believes that ABL's financial risk profile will remain sound over the medium term, with healthy capital structure and debt protection metrics. Furthermore, its business risk profile is expected to improve over this period with the healthy revenue growth in its EPC business. However, the company's overall credit risk profile will remain exposed to its large equity investments in, and support requirements for, its BOT projects.

The ratings may be upgraded if ABL achieves an optimal mix of operational and under construction BOT projects; and its equity investment as well as support requirement for its BOT projects are not substantial enough to cause deterioration in its financial risk profile. Conversely, the outlook may be revised to 'Stable' if ABL faces increased risk of project execution, leading to substantial delay in project implementation, or if it is required to provide substantially more-than-expected support to its group companies due to lower toll collections.

Shares of the company declined Rs 1.65, or 2.61%, to trade at Rs 61.60. The total volume of shares traded was 650 at the BSE (11.09 a.m., Friday).