Credit rating agency, CARE has reaffirmed ‘A’ rating to Saregama India’s long term bank facilities worth Rs 17 crore and ‘A1’ rating to company’s Short term Bank Facilities worth Rs 1 crore.
The ratings continue to draw strength from (Saregama India’s) SIL’s established branding and positioning in the domestic music industry, strong group with experienced management, large music archive leading to consistent revenue generation through licensing fees, stabilization of TV serial segment’s revenue, increased opportunities in the digital space business thus enabling SIL to efficiently monetize its extensive music library, availability of adequate liquid investments along with satisfactory financial risk profile marked with comfortable capital structure.
Furthermore, the ratings continue to be constrained by high obsolescence risk associated with the distribution formats, threat from piracy, higher cost of content acquisition and large exposure to group companies.
