ICRA has placed the LA and A1 ratings outstanding against the bank lines of Huntsman International (India) Private Limited [HIIPL] and Huntsman Advance Material (India) Private Limited [HAMIPL] under rating watch with negative implications.

ICRA has also placed LA(SO)/A1(SO) ratings outstanding against the bank lines of Baroda Textile Effects Private Limited, wholly owned subsidiary of HIIPL, under rating watch with negative implications, as these ratings are based on an unconditional and irrevocable guarantees from HIIPL and HAMIPL for servicing the bank lines. The ratings have been placed under watch with negative implications as Huntsman Group through a subsidiary has recently completed the acquisition of the chemical business of Laffans Petrochemical Limited at a consideration of around Rs.106 Crore, as part of which HIIPL has extended a financial guarantee for the term loan mobilized to fund the acquisition. Moreover, HAMIPL has extended an ICD to fund the same.

ICRA will assess the impact of the acquisition on the credit quality of these companies and will take a final rating action after discussions with the managements of the companies concerned.