LG Balakrishnan Credit Rating: ICRA Reaffirms AA/Stable Rating

What Happened ?

LG Balakrishnan & Bros Limited informed the stock exchanges that ICRA Limited has reaffirmed the credit ratings assigned to its fixed deposits, long-term fund-based working capital facilities, and short-term non-fund-based working capital facilities. The company received the rating letter on July 28, 2026, and disclosed the reaffirmation under Regulation 30 of the SEBI Listing Regulations.

key details

Key Highlights

• Fixed Deposits (₹40 crore): ICRA AA (Stable) – Reaffirmed.
• Long-Term Fund-Based Cash Credit (₹200 crore): ICRA AA (Stable) – Reaffirmed.
• Short-Term Non-Fund-Based Facilities (₹100 crore): ICRA A1+ – Reaffirmed.
• Total long-term rated bank facilities amount to ₹200 crore.
• Total short-term rated facilities amount to ₹100 crore.
• The ratings were published by ICRA Limited on July 16, 2026, and the company received the rating letter on July 28, 2026.
• The disclosure has been made under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Business Impact:

• The reaffirmation reflects continued confidence in LG Balakrishnan & Bros’ credit profile and financial stability. Maintaining strong long-term and short-term credit ratings supports the company’s borrowing capacity and funding flexibility for working capital requirements.

Risk Analysis

Summary:

• The announcement represents a reaffirmation of existing ratings rather than an upgrade. Future ratings will continue to depend on the company’s financial performance, liquidity position, leverage, and debt servicing capability.

Key Risks:

• Ratings remain unchanged and are subject to periodic surveillance.
• Any deterioration in profitability or leverage could affect future ratings.
• Changes in working capital requirements may influence borrowing levels.
• Macroeconomic and industry conditions could impact future credit assessments.

Worst Case:

• If the company’s financial profile weakens due to lower profitability, higher leverage, or reduced debt servicing capacity, ICRA could revise the ratings in future reviews.

Risk Level: Low

Company Commentary

According to LG Balakrishnan & Bros Limited:

• ICRA has reaffirmed ICRA AA (Stable) ratings for fixed deposits and long-term fund-based working capital facilities.
• ICRA has reaffirmed ICRA A1+ for short-term non-fund-based working capital facilities.
• The company has disclosed the rating reaffirmation under Regulation 30 of the SEBI Listing Regulations after receiving the rating letter on July 28, 2026.