Credit Rating Action
Orchid Pharma Credit Rating Downgraded by CARE; Outlook Revised to Stable
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orchpharma
BSE
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Orchid Pharma has received a credit rating downgrade from CARE Ratings for its long-term bank facilities, indicating potential concerns over credit profile despite a stable outlook.
PRICE-SENSITIVE TRIGGER
Event: Credit rating downgrade by CARE Ratings
Type: Credit Rating Action
Impact: Negative
Immediate Effect: Signals deterioration in credit profile, which may impact borrowing costs and investor sentiment.
Key Metrics
- Long-Term Bank Facilities: ₹207.50 Cr → Rated CARE BBB+ (Stable) (Downgraded from CARE A-)
- Long/Short-Term Facilities: ₹75.00 Cr →
- Long-Term: CARE BBB+ (Stable) (Downgraded)
- Short-Term: *CARE A2 (Reaffirmed)
- Short-Term Bank Facilities: ₹84.00 Cr → CARE A2 (Reaffirmed)
Highlights
Downgrade: CARE A- → CARE BBB+
What Happened ?
Orchid Pharma Limited informed that CARE Ratings has revised its credit ratings for the company’s bank facilities.
The key change includes a downgrade of long-term ratings from CARE A- to CARE BBB+, while maintaining a Stable outlook.
Short-term ratings have been reaffirmed at CARE A2.
Key Details
- Rating agency: CARE Ratings
- Long-term rating downgraded
- Outlook revised/maintained as Stable
- Short-term rating reaffirmed
- Rating watch status removed
Note: Rating downgrade indicates increased credit risk perception despite stable outlook.
Risk Analysis
Key Risks
- Higher cost of borrowing going forward
- Reduced lender/investor confidence
- Pressure on balance sheet metrics
- Possible impact on future fundraising
Worst Case Scenario
Further downgrade could push ratings closer to non-investment grade, significantly impacting financing ability.
Risk Level: High
Company Commentary
- Company disclosed rating revision by CARE
- Highlighted stable outlook despite downgrade
- Confirmed reaffirmation of short-term ratings
Official Exchange Filing: Orchid Pharma Limited