Credit rating agency, CARE has reaffirmed ‘BBB+’ (SO) rating to Shree Rama Newsprint’s Long-term Bank Facilities - Term Loan worth Rs 195.55 crore which was reduced from Rs 210 crore. The rating agency has revised ‘D’ rating to the company’s Long-term Bank Facilities - Fund-based worth Rs 60 crore from B- and ‘D’ rating to Short- term Bank Facilities - Non-fund Based worth Rs 75 crore from A4.
The revision in the standalone rating assigned to the bank facilities of SRNP factors in the ongoing delays in the servicing of rated debt obligations due to the stressed liquidity profile of SRNP. The ratings also factor in the continuing losses at operational level since FY09, unfavourable capital structure and weak debt coverage indicators and long impending receipt of proceeds towards the sale of land impacting the immediate liquidity of the company.
The reaffirmation of the structured obligation rating factors in the unconditional and irrevocable corporate guarantee from its promoter - WCPM for its term loans, support from the promoters in the form of inter-corporate deposits extended to SRNP along-with a long track record of operations of WCPM in the paper industry.
Rama Newsprint and Papers established in 1996 is the India’s largest private sector Newsprint and Printing & Writing paper manufacturing facility at a single location, having an installed capacity, based on Virgin Pulp as well as Recycled fibre, to manufacture either 1,44,000 tonnes per annum of Newsprint or 1,80,000 tonnes per annum of Printing & Writing paper or a mix of both.
Company Name | CMP |
---|---|
JK Paper | 386.20 |
TN Newsprints | 253.30 |
West Coast Paper | 596.60 |
Emami Paper Mills | 110.20 |
Andhra Paper | 497.45 |
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