The Rationale report states that the ratings continue to reflect the strong financial flexibility of the company as the holding company of the Godrej group. The ratings also factor in the healthy credit risk profile of GIL and the reputation of the Godrej group.
These strengths are partially offset by exposure to market-related risks and large refinancing requirement.
For arriving at its ratings, CRISIL Ratings has followed the holding company approach and has considered the standalone credit risk profile of GIL.
CRISIL Ratings believes GIL will continue to benefit from its strong financial flexibility, resulting from the healthy market value of investments in group companies.