Credit rating agency, ICRA has revised the rating assigned to the Rs 7.2 crore term loans and the Rs 2 crore million long-term fund based limits of Saboo Sodium Chloro (SSCL) from LBB+ to LBB. The outlook on the long term rating is stable.

The revision in the rating reflects the deterioration in financial risk profile characterised by increase in gearing level and deterioration in coverage metrics over the last couple of years.

The rating is further constrained by the relatively low market share of the company in comparison to other branded players, stiff competition from unorganised players due to fragmented nature of domestic salt industry and marketing risks associated with the new plant at Gandhidham, Gujarat.

The rating, however, favourably factors in long and established presence of SSCL in the domestic salt business and moderately strong brand of the company (Surya) in the northern region.