Credit rating agency, CARE has revised the assigned rating of long-term bank facilities of JK Sugar (JKSL) for a reduced amount. The rating has been revised from ‘BB+’ to ‘BB’ while the amount is been reduced from Rs 52.00 crore to Rs 44.50 crore.
The rating agency has however, reaffirmed the assigned rating ‘A4’ to the short-term bank facilities of the company for an enhanced amount. The amount has been enhanced from Rs 7.00 crore to Rs 8.00 crore.
The revision in the long-term rating takes into account continuous losses incurred by JKSL which have led to diminution in net worth and high gearing levels. Going ahead, ability of the company to improve profitability amidst highly regulated environment and seasonal operations shall be the key rating sensitivity.
Set up as a division of JK Tyre and Industries, JK Sugar belongs to the Singhania group led by Hari Shankar Singhania and operates a sugar plant with a capacity of 5000TCD at Meerganj in Bareilly.
Company Name | CMP |
---|---|
Shree Renuka Sugar | 45.55 |
Bajaj Hindusthan Sug | 36.29 |
Triveni Engg. & Inds | 370.95 |
Balrampur Chini Mill | 402.00 |
Dalmia Bharat Sugar | 412.30 |
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