The long term rating has been reaffirmed to BWR B with stable outlook and short term rating has been reaffirmed to BWR A4.
According to the rationale report, the rating reaffirmation of the bank loan facilities of BPL continues to reflect the promoters’ experience of more than three decades in the consumer durables industry, established track record and brand and the recent modernization of its Printed Circuit Board (PCB) manufacturing facility.
The ratings, are constrained by the modest scale of operations, deterioration in the credit risk profile with less than average credit metrics, stretched liquidity and customer concentration risks.
BWR believes BPL’s business risk profile will be maintained over the medium term. The outlook may be revised to ‘Negative’ if the company reports significantly lower than expected performance resulting in further deterioration of coverage indicators.
BPL ended at Rs41.50 apiece down by Rs0.45 or 1.07% on the BSE.