Credit Rating Update
Nilkamal Credit Ratings Reaffirmed by CARE; Long-Term Facilities Continue at CARE AA (Stable)
NSE
nilkamal
BSE
523385
- Nilkamal Limited has informed the stock exchanges that CARE Ratings Limited has reaffirmed the credit ratings assigned to its various debt instruments and banking facilities.
- The reaffirmation reflects the company’s continued credit profile, with long-term bank facilities and non-convertible debentures retaining a CARE AA; Stable rating, while short-term bank facilities and commercial papers continue to be rated CARE A1+.
PRICE-SENSITIVE TRIGGER
Event: CARE Ratings reaffirmed Nilkamal Limited’s credit ratings across its debt instruments and banking facilities.
Type: Credit Rating Update
Impact: Positive
Immediate Effect: The reaffirmation indicates continued confidence in Nilkamal Limited’s credit quality and financial profile without any rating downgrade or outlook revision.
financials:
Credit Rating Highlight:
- Long-Term Bank Facilities: ₹547.68 crore (reduced from ₹568.75 crore) — CARE AA; Stable (Reaffirmed)
- Short-Term Bank Facilities: ₹209.21 crore (enhanced from ₹208.21 crore) — CARE A1+ (Reaffirmed)
- Non-Convertible Debentures (Series 1): ₹50.00 crore — CARE AA; Stable (Reaffirmed)
- Non-Convertible Debentures (Series 2): ₹100.00 crore — CARE AA; Stable (Reaffirmed)
- Commercial Paper (Carved Out): ₹50.00 crore — CARE A1+ (Reaffirmed)
- Commercial Paper (Carved Out): ₹50.00 crore — CARE A1+ (Reaffirmed)
- Commercial Paper (Carved Out): ₹100.00 crore — CARE A1+ (Reaffirmed)
Highlight:
- CARE Ratings reaffirmed all major long-term and short-term credit ratings of Nilkamal Limited while maintaining a Stable outlook on long-term facilities.
What Happened ?
Nilkamal Limited announced that CARE Ratings Limited has completed its periodic review of the company’s credit facilities and reaffirmed the existing ratings across its long-term borrowings, short-term banking facilities, non-convertible debentures (NCDs), and commercial paper programmes.
While there were minor revisions in sanctioned facility amounts, the rating agency maintained the same rating categories and outlook, indicating no deterioration in the company’s overall creditworthiness.
key details
Credit Rating Review:
- CARE Ratings reaffirmed the rating on the company’s long-term bank facilities at CARE AA; Stable.
- The sanctioned amount for long-term facilities now stands at ₹547.68 crore, compared with ₹568.75 crorepreviously.
- Short-term bank facilities continue to carry the highest short-term rating of CARE A1+, with sanctioned limits increased to ₹209.21 crore.
- Both outstanding Non-Convertible Debenture (NCD) programmes retained their CARE AA; Stable ratings.
- All commercial paper programmes carved out from sanctioned working capital limits continue to be rated CARE A1+.
What the Ratings Indicate:
- CARE AA; Stable reflects a high degree of safety regarding timely servicing of financial obligations with a stable outlook.
- CARE A1+Â represents the highest credit quality for short-term debt instruments, indicating a very strong capacity to meet short-term financial commitments.
- The reaffirmation suggests that CARE Ratings continues to view Nilkamal’s business profile, liquidity position and debt servicing capability as stable.
Note:
- The disclosure relates only to the reaffirmation of existing credit ratings. No new borrowings, refinancing plans or changes in capital structure were announced.
Risk Analysis
Summary:
- The rating action is supportive of Nilkamal’s financial standing and does not indicate any immediate credit concerns. However, future ratings remain dependent on the company’s operating performance and leverage profile.
Key Risks:
- Future credit ratings may change if operating performance weakens materially.
- Significant increase in leverage or deterioration in cash flows could affect future rating reviews.
- The disclosure does not include any revised financial guidance or operational outlook.
Worst Case:
- A sustained deterioration in profitability, liquidity or debt metrics could result in rating revisions during future periodic reviews.
Risk Level: Low
Company Commentary
- CARE Ratings has reaffirmed the ratings assigned to Nilkamal Limited’s banking facilities and debt instruments.
- Long-term facilities and non-convertible debentures continue to be rated CARE AA; Stable.
- Short-term bank facilities and commercial paper programmes continue to carry the CARE A1+ rating.
- The disclosure has been made under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
Official Exchange Filing: Nilkamal Limited
