New Delhi, December 23, 2005 (UNI)

Rating agency ICRA has reaffirmed the LAAA rating assigned to the Rs 600-crore long term debt programme of Hindustan Aeronautics Ltd (HAL).

ICRA has also reaffirmed the the A1+ rating assigned to the Rs 300 crore short term debt programme of HAL. The ratings indicate lowest credit risk in the short and long term and take into consideration HAL's strong market position as the major domestic agency for the manufacture and overhaul of the defence aircraft fleet.

While HAL has a high dependence on the Indian Defence Sector, its strategic importance to the sector and its 100 per cent government ownership mitigate the impact of this concentration risk and support the rating, the agency said.