Ind Ra affirms GHCL credit rating at 'IND AA-' with Stable outlook

23 Nov 2022 , 09:17 AM

GHCL has informed that on November 22, 2022, India Ratings & Research has affirmed GHCL Limited’s Long-Term Issuer Rating to ‘IND AA- Stable’.

Further, it is informed that said Credit Rating Agency, has also affirmed ‘IND A1+’ to GHCL Limited for issuance of Commercial Paper (CP) of Rs1000 million, which shall be carved out of existing working capital facilities.

According to the rating rationale report, Ind-Ra has continued to take a consolidated view of GHCL and its wholly-owned subsidiaries – Grace Home Fashion LLC and Dan River Properties LLC, owing to the strong operating and strategic linkages among the entities.

The affirmation reflects GHCL’s continued healthy business profile, reflected in its leading market position in the domestic soda ash industry, competitive cost structure, resilient margin profile and healthy credit metrics, which are likely to be sustained over the medium term.

The ratings factor in GHCL’s sale of home textiles business and the proposed demerger of the textile segment, which are likely to result in a more stable earnings profile.

At around 9:18 AM, GHCL Ltd is currently trading at Rs572 per share up by Rs3.8 or 0.67% from its previous closing of Rs568.20 per share on the BSE.

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