Credit rating agency, CARE has revised ratings of Rs 500.99 crore long term bank facilities of Sterling Biotech to BB from BBB+. The rating agency has also revised rating of Rs 355 crore short term bank facilities of the company to A4 from A3+.
The revisions in the ratings take into account the weakened financial risk profile of the company on account of tight liquidity position as reflected by a fall in the current ratio and substantial elongation of the working capital cycle.
Sterling Biotech is the flagship company of the Sandesara group, promoted by Nitin Sandesara. It is mainly engaged in the production and sale of pharma-grade gelatine, Di-calcium Phosphate (DCP), a by-product of gelatine mainly used as poultry feed and Co-Enzyme Q10 (CoQ10), a dietary supplement used to boost the human immune system.
