Credit rating agency, CARE has revised rating of Riga Sugar’s long-term bank facilities worth Rs 124.80 crore to ‘B+ (Stable)’ from ‘B’. The rating agency has reaffirmed ‘A4’ ratings to company’s short term bank facilities worth Rs 5 crore.
The revision in the rating is on account of improvement in financial performance witnessed by significant reduction in losses in FY16 (refers to the period Apr 01 to Mar 31) and 9MFY17 coupled with a positive outlook of the sugar industry. However, the rating is constrained by weak financial risk profile marked by high gearing ratios, working capital intensive nature of the business, susceptibility of sugar industry to the vagaries of nature, cyclicality associated with the sugar industry and the regulated outlook of the same.
Company Name | CMP |
---|---|
Shree Renuka Sugar | 42.70 |
Bajaj Hindusthan Sug | 30.62 |
Triveni Engg. & Inds | 324.70 |
Balrampur Chini Mill | 366.80 |
Dalmia Bharat Sugar | 362.15 |
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