Ind-Ra upgrades Shree Renuka Sugars long-term issuer rating; Stock hits 5% lower circuit

Ind-Ra mentioned that the Positive Outlook reflects the likelihood of SRSL's financial profile sustaining at stronger than previously expected levels in FY22.

Aug 23, 2021 11:08 IST India Infoline News Service

India Ratings and Research (Ind-Ra) has upgraded Shree Renuka Sugars Limited’s (SRSL) Long-Term Issuer Rating to ‘IND A-’ from ‘IND  BBB+’ while resolving the Rating Watch Positive (RWP). Ind-Ra has assigned a positive outlook.

In its rationale report, Ind-Ra continues to factor in SRSL’s strong legal, operational and strategic linkages with its ultimate parent, Wilmar International Limited (Wilmar), and the continued strong support that it receives from Wilmar to arrive at the ratings.

Further, Ind-Ra said that the upgrade and RWP resolution reflect the company's improved financial flexibility after the prepayment of its entire debt that had been classified as a non-performing asset (NPA) and an improvement in its standalone performance.

Further, Ind-Ra mentioned that the Positive Outlook reflects the likelihood of SRSL's financial profile sustaining at stronger than previously expected levels in FY22. In FY21, the company’s performance significantly outperformed Ind-Ra’s expectations, and despite a likely yoy moderation, SRSL’s performance over the next couple of years is likely to remain better than previously expected.

At around 11.16 am, Shree Renuka Sugars was trading at the lower price band of Rs22.60 per piece down by 4.8% on Sensex. 

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