By: ICN Bureau
Last updated : March 06, 2018 8:18 pm
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.
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.