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