CARE reaffirms ‘A1+' rating on Commercial Paper of KRBL Limited; stock jumps~2%

The rating agency has reviewed commercial paper worth Rs500 crore.

The reaffirmation of the rating granted to KRBL’s commercial paper instrument continues to draw strength from the experienced promoters with a lengthy track record of operations in the rice business. In both the local and foreign markets, the firm has a well-established brand name and market position in the basmati rice sector.

These rating strengths are, however, partially offset by the inherently working capital-intensive nature of operations, which is caused by the high inventory levels necessary to be maintained due to the seasonality of basmati paddy supply (October to December), said CARE in its rating rationale.