Credit rating agency, CARE has reaffirmed the assigned ‘BBB-‘rating to the long-term bank facilities of IG Petrochemicals (IGPL) for a reduced amount. The amount is been reduced from Rs 184.21 crore to Rs 168.00 crore.
The agency has also reaffirmed the assigned ‘A3’ rating to the short-term bank facilities of the company for an enhanced amount. The amount is been enhanced from Rs 70.00 crore to Rs 134.00 crore.
IGPL’s ability to successfully implement the project within the estimated time and cost and a favourable outcome of the current anti-dumping investigation against cheap imports are the key ratings sensitivities. The ratings are, however, constrained by the inherent risk associated with the petrochemicals business, concentration in a single product - phthalic anhydride.
IG Petrochemicals is a dominant player in the domestic Phthalic Anhydride (PAN) industry. IGPL has its manufacturing facilities located at Taloja, Maharashtra with an installed capacity of 1,16,110 metric tonnes per annum (mtpa) as on March 31, 2011.
