BHEL, which had closed yesterday at Rs.55.40, opened lower at Rs.54.95, going down to Rs.54.45 but from there is bounced back to Rs.56.25 and is currently in the green.
The stock slipped after CRISIL downgraded the rating on the long term bank facilities ‘CRISIL AA’ from ‘CRISIL AA+.
Though it downgraded the rating, the outlook, it raised up by a tad from ‘negative’ to ‘stable.’ And it kept intact the rating on short term bank facilities at ‘CRISIL A1+’.
So why the downgrade in the long term rating alone? CRISIL said that it was a reflection of the company’s lower than expected operating performance and consistent decline in cash levels in H1FY20.
Thus the market initially reacted to only the downgrade in the rating but it seems to have later dawned that all is not negative and bounced back.