Credit rating agency, CARE has revised rating of Hindustan Organic Chemicals’ bond issue. The rating agency has revised rating of company’s Redeemable Non-Convertible Unsecured Taxable Bonds / NCD worth Rs 100 crore to ‘D’ from ‘AAA’ (SO).
CARE has assigned the rating solely based on the strength of an unconditional and irrevocable guarantee from Government of India (GoI) executed through the Department of Chemicals & Petrochemicals, Ministry of Chemicals and Fertilizers. The revision was on account of failure to fund the designated account (as per the structured payment mechanism specified in the offer document) leading to delay in interest payment to the bondholders.
