Credit rating agency, CARE has assigned ‘B’ rating to JCT’s Long-term bank facilities worth Rs 280.73 crore. The rating agency has also assigned ‘A4’ rating to the company’s Short-term bank facilities worth Rs 71.27 crore. The ratings assigned to the bank facilities of JCT are constrained on account of weak financial risk profile marked by accumulated losses, highly leveraged capital structure and strained liquidity position.
The ratings also factor in the past delays in repayment of its debt obligations, restructuring of debt under CDR mechanism and default in repayment of FCCBs. The ratings, however, derive strength from the promoters’ experience, JCT’s established position in Indian textile industry, diversified product mix and wide distribution network.
