By: ICN Bureau
Last updated : March 06, 2018 8:18 pm
CRISIL has assigned its "˜BB-/Stable/P4+' ratings to the bank facilities of Kamdhenu Commercial (India) Pvt Ltd (KCPL). The ratings reflect KCPL's below-average financial risk profile, marked by a small net worth and weak debt protection metrics
CRISIL has assigned its ?BB-/Stable/P4+? ratings
to the bank facilities of Kamdhenu Commercial (India) Pvt Ltd (KCPL). The
ratings reflect KCPL?s below-average financial risk profile, marked by a small
net worth and weak debt protection metrics, exposure to intense competition in
the edible oils industry, and short track record of operations. These rating
weaknesses are partially offset by the extensive industry experience of KCPL?s
promoters.
Outlook: Stable
CRISIL believes that KCPL will continue to
benefit from the extensive industry experience of its promoters, over the medium
term. The outlook may be revised to ?Positive? if the company?s financial risk
profile improves substantially, most likely because of an improvement in capital
structure and sustainable increase in revenues and profitability. Conversely,
the outlook may be revised to ?Negative? if KCPL undertakes a
larger-than-expected, debt-funded capital expenditure programme, or reports a
decline in its margins and revenues.