Credit rating agency, CARE has reaffirmed ‘AA+’ rating to Tata Chemicals’ long term bank facilities worth Rs 765 crore and ‘A1+’ rating to company’s short term Bank Facilities worth Rs 3580 crore. The rating agency has also reaffirmed ‘AA+’ ratings to company’s Non Convertible debentures worth Rs 250 crore.
The reaffirmation of the ratings is based upon the long and established track record of Tata Chemicals (TCL), its position as a major producer in the global soda ash industry, diversified revenue streams resulting from a varied product portfolio as well as geographically dispersed sales. The ratings also positively build in the favourable financial risk profile of TCL with moderate gearing and adequate debt coverage indicators and high financial flexibility arising from surplus cash/liquid investments consistently held by the company. The ratings also factor in the strategic importance of TCL within the Tata group.
TCL is a part of over $100 billion Tata group, currently the second-largest producer of soda ash in the world with manufacturing facilities in India, UK, Kenya and USA. It is India’s leading crop nutrients player with its own manufacturing of urea and phosphatic fertilizers (namely, Di Ammonium Phosphate (DAP), Nitrogen Potash and Phosphorus (NPK) and single Super Phosphate (SSP)) and a leading player in crop protection business through its subsidiary Rallis India.
