Credit rating agency, CARE has revised ‘D’ rating to long term bank facilities of REI Agro from ‘BB+’. Moreover, the rating agency has also revised rating of the company’s short term bank facilities to ‘D’ from ‘A4+’.
The aforesaid revision in ratings of the company takes into account the ongoing delays in debt servicing by the company. The cash flow position of the company has been severely impacted by lower than expected cash accruals from operations and increase in working capital requirements to finance the high inventory and debtor level. This has resulted in the inability of the company to meet its debt obligations on time.
REI Agro is engaged in processing of Basmati rice (installed capacity of 118 tph). It is also involved in trading in commodities and wind power generation.
