Credit rating agency, CARE has revised rating of Walchandnagar Industries’ long term bank facilities (Fund-based) worth Rs 365 crore to ‘BBB-’ from ‘BBB+’. The rating agency has also revised rating of company’s short term bank facilities s (Non-fundbased) worth Rs 1032 crore to ‘A3’ from ‘A2’.
The revision in the ratings assigned to the bank facilities of Walchandnagar Industries (WIL) takes into account the deterioration in the financial risk profile of the company during FY15 (refers to the period October 01 to September 30) marked by decline in the total operating income, higher losses resulting into erosion of the net worth base of the company in FY15 and leveraged capital structure as on September 30, 2015.
Furthermore, the loss coupled with inordinate delay in the realization of the outstanding retention money from two of its major customers led to stress on the liquidity profile of the company leading to increased working capital utilization.
