Credit rating agency, ICRA has reaffirmed LBBB- (SO) (Structured and A3 (SO) (Structured Obligation)) ratings to term loans aggregating to Rs 25 crore of Albright and Wilson Chemicals India (AWCIL). The outlook on the long term rating is revised from negative to positive.

The SO (structured obligation) rated term loans are credit enhanced by an unconditional and irrevocable corporate guarantee issued by Rhodia SA, France. An SO rating is specific to the rated issue, its terms, and its structure.

SO ratings do not represent ICRAs opinion on the general credit quality of the issuers concerned. AWCIL also has ratings outstanding of LBB and A4 with stable outlook to the working capital facilities aggregating of Rs 250 million.

The SO rating takes into consideration the unconditional & irrevocable guarantee provided by Rhodia SA, France (rated by Moodys at Ba3 with ratings under review for possible upgrade).

The rating addresses the servicing of the term loans to happen as per the terms of the underlying sanction letter and the guarantee arrangement and assumes that the guarantee will be duly invoked, as per the terms of the underlying sanction letter and guarantee agreements, in case there is a default in payment by the borrower.