Credit Rating Update
RCF Receives ICRA Rating Reaffirmation Across ₹9,300 Crore Debt Facilities and Commercial Paper
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- Rashtriya Chemicals and Fertilizers Limited (RCF) has informed the stock exchanges that ICRA Limited has reaffirmed the company’s credit ratings across its Non-Convertible Debentures (NCDs), bank loan facilities and Commercial Paper. The reaffirmation covers debt facilities aggregating ₹9,300 crore, reflecting continued confidence in the company’s credit profile without any change in the existing ratings.
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PRICE-SENSITIVE TRIGGER
Event: ICRA Reaffirms Credit Ratings for RCF’s Debt Instruments
Type: Credit Rating Update
Impact: Positive
Immediate Effect: ICRA has reaffirmed the existing ratings assigned to RCF’s debt instruments and borrowing facilities, indicating stability in the company’s creditworthiness and debt servicing capability.
Metrics:
Debt & Credit Rating Metrics:
- Non-Convertible Debentures (NCDs): ₹1,200 crore – [ICRA] AA (Stable) – Reaffirmed
- Long-Term Fund-Based Term Loans: ₹3,500 crore – [ICRA] AA (Stable) – Reaffirmed
- Long-Term / Short-Term Non-Fund Based Facilities: ₹500 crore – [ICRA] AA (Stable) / [ICRA] A1+ – Reaffirmed
- Long-Term Fund-Based Cash Credit: ₹1,100 crore – [ICRA] AA (Stable) – Reaffirmed
- Commercial Paper (CP): ₹3,000 crore – [ICRA] A1+ – Reaffirmed
Highlight:
- ICRA reaffirmed ratings across debt facilities totaling approximately ₹9,300 crore while maintaining a Stable outlook on long-term borrowings.
What Happened ?
Rashtriya Chemicals and Fertilizers Limited informed the stock exchanges that ICRA Limited has reaffirmed the credit ratings assigned to the company’s outstanding debt instruments and banking facilities.
The reaffirmation covers long-term borrowings, non-convertible debentures, cash credit facilities, non-fund-based facilities and commercial paper, with all long-term instruments retaining the AA (Stable) rating while short-term commercial borrowing facilities continue to carry the A1+ rating. The rating action reflects no change in RCF’s existing credit assessment.
key details
Credit Rating Action:
Reaffirmed Long-Term Ratings
- Non-Convertible Debentures continue to be rated [ICRA] AA (Stable).
- Long-Term Fund-Based Term Loans retain [ICRA] AA (Stable).
- Long-Term Cash Credit facilities continue with [ICRA] AA (Stable).
- Long-Term component of Non-Fund Based facilities also remains at [ICRA] AA (Stable).
Reaffirmed Short-Term Ratings
- Commercial Paper continues to carry the highest short-term rating of [ICRA] A1+.
- Short-Term component of Non-Fund Based banking facilities also retains [ICRA] A1+.
Instrument Coverage:
The reaffirmation applies to:
- Non-Convertible Debentures
- Fund-Based Term Loans
- Cash Credit Facilities
- Non-Fund Based Banking Facilities
- Commercial Paper Programme
Investor Relevance:
A reaffirmation, rather than an upgrade or downgrade, indicates that the rating agency continues to view the company’s financial profile, liquidity position and debt servicing capability as consistent with its previously assigned ratings. Such announcements generally support confidence among lenders and debt market participants.
Risk Analysis
Summary:
- The filing does not indicate any deterioration in RCF’s credit profile. However, the company remains subject to periodic surveillance by ICRA, and future ratings may change depending on business performance, leverage, liquidity and other credit factors.
Key Risks:
- Credit ratings remain subject to periodic review by ICRA.
- Future changes in leverage, profitability or liquidity could influence subsequent rating actions.
- Any material deterioration in financial performance or debt servicing capability may impact future ratings.
Worst Case:
- A weakening financial profile or increased leverage could result in a future rating downgrade, potentially increasing borrowing costs.
Risk Level: Low
Company Commentary
- RCF informed the exchanges that ICRA has reaffirmed the ratings assigned to its Non-Convertible Debentures, Bank Loan Facilities and Commercial Paper.
- The company submitted the rating communication received from ICRA under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
Official Exchange Filing: Rashtriya Chemicals and Fertilizers Limited
