CRISIL assigns 'AA/Stable' rating on Godrej Industries Rs1500cr NCDs

CRISIL Ratings believes GIL will continue to benefit from its strong financial flexibility, resulting from the healthy market value of investments in group companies

Mar 17, 2021 11:03 IST India Infoline News Service

CRISIL Ratings has assigned its ‘CRISIL AA/Stable’ rating to the Rs1,500cr proposed non-convertible debenture (NCD) of Godrej Industries Limited (GIL) and reaffirmed the outstanding ratings on the existing NCDs and commercial paper programme at ‘CRISIL AA/Stable and CRISIL A1+’

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.

Godrej Industries was currently trading at Rs510 apiece up by Rs3.7 or 0.73% from its previous closing of Rs506.30 apiece on the BSE, at around 11:20 AM

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