Credit rating agency, CARE has reaffirmed ‘B+ (Stable)’ rating assigned to TGB Banquets and Hotels’ long-term bank facilities worth Rs 79.13 crore. The rating assigned to the company continues to remain constrained on account of subdued operating performance marked by decline in scale of operations during FY16.
The rating further continues to remain constrained due to declining profitability owing to higher interest and depreciation charges, elongated operating cycle coupled with high amount of loans and advances extended by TGB leading to stressed liquidity position of the company, geographical concentration of its operations along with presence in a competitive and inherently cyclical hospitality industry which is passing through a challenging environment.
