Credit rating agency, ICRA has revised the long-term ratings assigned to the Rs 607 crore (reduced from Rs 630 crore) long-term debt programme, Rs 1450 crore (enhanced from Rs 855 crore) fund based bank limits and Rs 3 crore Non Convertible Debenture (NCD) programme of Balrampur Chini Mills to A+ from AA- and changed the outlook on the rating to Negative from Stable.
ICRA has also revised the short-term rating assigned to the Rs 500 crore Commercial Paper/Short-Term Debt programme and the Rs 66.74 crore (reduced from Rs 195 crore) non-fund based limits of the company to A1 from A1+.
The changes in ratings and outlook factor in the weak near term outlook on the domestic sugar industry on account of expected surplus production in sugar year1 2011-12 (SY12), the expected increase in the company’s cost of production in SY12 on account of a significant upward revision of the state advised price (SAP) of sugarcane in the state by the Government of Uttar Pradesh, which is likely to adversely affect the profitability of the company in the near term.
Balrampur Chini is one of the largest integrated sugar manufacturers in India. Its business portfolio consists of manufacturing and marketing of sugar, ethyl alcohol, ethanol, generation and selling of power and also manufacturing and marketing of organic manure.
| Company Name | CMP |
|---|---|
| Shree Renuka Sugar | 28.14 |
| Bajaj Hindusthan Sug | 18.80 |
| Triveni Engg. & Inds | 393.00 |
| Balrampur Chini Mill | 486.00 |
| Dalmia Bharat Sugar | 394.05 |
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