CRISIL has assigned its ?B/Stable/P4? ratings to the bank facilities of Ideal Chemicals (India) Pvt Ltd (ICI). The ratings reflect ICI?s weak financial risk profile, marked by small net worth, high gearing, high total outside liabilities to tangible net worth, and weak debt protection metrics, high receivables, and large working capital requirements. These rating weaknesses are partially offset by ICI?s established relationship with its principals and promoters? extensive experience in the chemical trading business.

Outlook: Stable

CRISIL believes that ICI will continue to benefit from its established relations with suppliers, over the medium term. The outlook may be revised to ?Positive? in case ICI?s financial risk profile improves, most likely because of substantial capital infusion by the promoters. Conversely, the outlook may be revised to ?Negative? if larger-than-expected, debt-funded capital expenditure materially affects ICI?s debt protection metrics, or intense competition leads to significant decline in the company?s operating profitability and consequently, cash accruals.