Bharat Heavy Electricals (BHEL), one of the largest engineering and manufacturing companies in India said that the rating agency CRISIL has downgraded the rating on long-term bank facilities of the company from AA/negative to AA-/negative. The agency has reaffirmed rating on the company's short-term facilities at A1-plus.

CRISIL said the rating downgrade reflects weakening of business and financial risk profile of the business and financial risk profile of BHEL, on account of significantly weaker-than-expected operating performance in fiscal 2021, and operating losses reported for the second consecutive year.

The 'Negative' outlook has been based on the possibility that BHEL's profitability may remain under pressure in financial year 2022 amid the ongoing pandemic, further weakening the credit risk profile, CRISIL said.

Shares of the company gained Rs 3.50, or 5.44%, to settle  at  Rs 67.80.  The total volume of shares traded  was  7,827,225 at  the BSE (Monday).