CRISIL downgrades rating on the bank facilities of Venus Remedies

Credit rating agency, CRISIL has downgraded its rating on the bank facilities of Venus Remedies to ‘D’ from ‘BB+’. The downgrade is reflecting delays in repayment of term loan by the company driven by a stretched liquidity.

The company stretched liquidity is on account of the significant increase in total cost of the large debt-funded capital expenditure over the past one year and high working capital requirements. The company is undertaking capex towards setting up marketing office. The total cost of this capex is estimated to have increased by about Rs 10 to Rs 15 crore.

Venus Remedies is a pharmaceutical manufacturing company. The company provides formulations in area of antibiotics and oncological therapeutics. The company has two manufacturing facilities located in India and Germany. It manufactures Oncological and Cefelosporine Injectable products.