Credit Rating Assignment
Swan Defence Receives ICRA Credit Ratings for ₹2,650 Crore Bank Facilities
NSE
SWANDEF
BSE
533107
Swan Defence and Heavy Industries Limited has informed the stock exchanges that ICRA Limited has assigned credit ratings to its ₹2,650 crore credit facilities. The ratings include [ICRA]BBB (Stable) for long-term facilities and [ICRA]A3+ for short-term unallocated facilities, providing an independent assessment of the company’s credit profile.
PRICE-SENSITIVE TRIGGER
Event: ICRA assigns credit ratings to bank credit facilities.
Type: Credit Rating Assignment
Impact: Neutral
Immediate Effect: The assignment of investment-grade ratings enhances the company’s credit profile and supports access to bank funding for ongoing and future financing requirements.
Metrics:
Key Financial Metrics:
- Total Rated Facilities: ₹2,650 crore
- Long-Term Fund-Based Term Loan: ₹1,150 crore
- Rating: [ICRA]BBB (Stable)
- Long-Term/Short-Term Unallocated Limits: ₹1,500 crore
- Rating: [ICRA]BBB (Stable) / [ICRA]A3+
Highlight:
- Total Credit Facilities Rated: ₹2,650 crore received investment-grade ratings from ICRA.
What Happened ?
Swan Defence and Heavy Industries Limited informed the NSE and BSE that ICRA Limited has assigned credit ratings to the company’s banking facilities under SEBI (LODR) Regulation 30.
The ratings cover both long-term term loans and unallocated long-term/short-term credit limits. The company has also enclosed ICRA’s detailed rating communication with the exchange filing.
key details
- ₹1,150 crore long-term fund-based term loan assigned [ICRA]BBB (Stable).
- ₹1,500 crore long-term/short-term unallocated limits assigned [ICRA]BBB (Stable) / [ICRA]A3+.
- Ratings were assigned by ICRA’s Rating Committee.
- The rated facilities primarily relate to banking arrangements supporting the company’s operations.
- ICRA stated that the ratings will remain under periodic surveillance and may be revised if material information or business conditions change.
Note:
- ICRA clarified that the assigned ratings represent its opinion on the company’s credit quality and should not be interpreted as a recommendation to buy, sell, or hold any security.
Risk Analysis
Summary:
- The assigned ratings are investment grade and carry a Stable outlook. However, they remain subject to annual surveillance and may be revised if the company’s financial profile, leverage, liquidity, or business performance changes materially.
Key Risks:
- Future rating revisions depend on operational and financial performance.
- Higher leverage or deterioration in debt servicing capability could affect ratings.
- Changes in borrowing structure or financing requirements may require rating review.
Worst Case:
- Any significant weakening in cash flows, liquidity, or debt servicing capability could result in a rating downgrade, potentially increasing borrowing costs and affecting future financing flexibility.
Risk Level: Medium
Company Commentary
- ICRA has assigned ratings to the company’s credit facilities.
- The ratings have been disclosed under Regulation 30 of the SEBI Listing Regulations.
- The detailed ICRA rating letter has been filed with the stock exchanges for investor reference.
- The company has made the disclosure available on its corporate website.
Official Exchange Filing: Swan Defence Limited
