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ICRA reaffirms rating of Shree Renuka Sugars’ bank facilities

29 Sep 2011 Evaluate

Credit rating agency, ICRA has reaffirmed the long-term rating of A+ and short-term rating of A1+ assigned to the term loans, fund based facilities and non-fund based facilities aggregating to Rs 6731 crore (enhanced from Rs 5112 crore) of Shree Renuka Sugars (SRSL). The long-term rating has a stable outlook. The rating agency has also reaffirmed the A1+ rating assigned to the Commercial Paper programme of the company aggregating to Rs 1,000 crore (enhanced from Rs 500 crore).

The reaffirmation of ratings takes into account the improvement witnessed in the domestic sugar operations of the company for the past two seasons characterized by increase in cane crushing and recovery rates as well as improvements expected for the operating and financial performance of the company’s Brazilian subsidiaries following acquisition of these companies by SRSL.

Shree Renuka Sugars is one of the largest private sector sugar manufacturers in the country, promoted by first generation entrepreneurs, viz. Murkumbi family, with a combined crushing capacity of about 35,000 TCD (across seven units) in India and 59,520 TCD (across four units) in Brazil.

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