CARE revises rating assigned to the bank facilities of RPG Life Sciences

Credit rating agency, CARE has revised the rating assigned to the bank facilities of RPG Life Sciences. The agency has revised the assigned ‘BBB-‘rating to ‘BBB’ to the long-term bank facilities of the company amounting Rs 25.33 crore. The agency has also revised the assigned ‘A3’ rating to ‘A3+’ to the short-term bank facilities of the company amounting Rs 40.92 crore.

Further, the agency has also revised the assigned ‘BBB-/A3’ rating to ‘BBB/A3+’ to the long-term/short-term bank facilities of the company amounting Rs 23.70 crore. However, the ratings continue to be constrained by the relatively small size of operations coupled with moderate liquidity indicators and gearing ratios. The company’s ability to achieve the projected sales and profitability together with receipt of USFDA approval remains the key rating sensitivities.

RPG Lifesciences (RPGLS), part of the RPG group, is a pharmaceutical company, engaged in manufacturing of Synthetic APIs, Biotech APIs and Formulations under its own brand name and contract manufacturing for large pharma companies. The company’s manufacturing facilities are located at Ankleshwar, Gujarat and Thane, Maharashtra.