The credit rating agency, ICRA has downgraded the long-term rating of Kanco Tea and Industries to ‘BBB-’ from ‘BBB’ and the outlook on the long-term rating is 'stable'. The rating agency has also downgraded the short-term rating of the company to ‘A3’ from ‘A3+’.
The downward revision in the ratings takes into account the reduced financial flexibility of the company on the back of significant increase in debt-service obligations caused by predominantly debt-funded capital expenditure incurred in the recent past to acquire a tea estate (Bamonpookrie Tea Estate).
Kanco Tea & Industries (previously known as Dhanvaridhi Concerns) was incorporated as a public limited company under the provisions of the Companies Act, 1956 on February 7, 1983 & obtained the Certificate for Commencement of Business on February 7, 1983 from Registrar of Companies, West Bengal.
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