CRISIL has assigned ?AA-(so)/Stable/P1+(so)? ratings to the bank facilities of Kribhco Shyam Fertilizers Ltd (KSFL). The ratings are based on the strength of an unconditional and irrevocable guarantee provided by KSFL?s parent, Krishak Bharati Cooperative Ltd (Kribhco, rated ?AA-/Stable/P1+? by CRISIL).

The guarantee covers the entire principal and interest payment obligations on the guaranteed bank facilities. The ratings are supported by a payment mechanism to ensure the fulfilment of the financial obligations on the rated instruments: Under the guarantee, in the event of default on interest or principal by KSFL relating to bank facilities, the guarantor will make the necessary payments immediately on receipt of the notice of invocation of the guarantee by the bank. Furthermore, irrespective of the invocation of guarantee by the bank, Kribhco will make necessary payments not later than 60 business days from the due date specified in the bank loan facility agreement for making such payments, if the borrower is unable to make the same on the due date as stipulated in the bank loan facility agreement.

Outlook: Stable

CRISIL?s ratings on KSFL?s bank loan facilities reflect the unconditional and irrevocable guarantee from the parent, Kribhco. The rating and outlook on KSFL?s bank facilities would be revised if there is any revision in the rating and outlook on Kribhco by CRISIL.