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CARE revises ratings of Rei Agro’s bank facilities

19 Feb 2014 Evaluate

Credit rating agency, CARE has revised ‘BB+’ rating to Rei Agro’s Long-term bank facilities worth Rs 351.4 crore from ‘BBB+’. The rating agency has also revised ‘BB+/A4+’ rating to the company’s Long/Short term facilities worth Rs 4,250 crore from ‘BBB+/A2’ and ‘A4+’ to Short term facilities worth Rs 10 crore from ‘A2’.

The company has received the ratings on the back of its long track record with leadership position in the basmati rice market, strategic location of the units with proximity to the raw material source and wide distribution network with a brand focus.

REIAL operates two manufacturing units, both located in state of Haryana. These facilities have an installed capacity of 61 TPH. In order to increase its basmati processing capacity, the company has acquired on lease basis, a processing capacity of 18 TPH, is located in Amritsar. This has led to an increase in the company's installed capacity to 79 TPH.

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