Further, India Ratings Assigns PVR’s PPMLD ‘IND PP-MLD AA-emr’/Negative.
PP-MLD refers to full principal protection in the equity linked notes wherein the issuer is obligated to pay the full principal upon maturity. The suffix ‘emr’ denotes the exclusion of the embedded market risk from the rating.
Ratings of the market-linked debentures is an ordinal assessment of the underlying credit risk of the instrument and do not factor in the market risk that investors in such instruments will assume.
This market risk stems from the fact that coupon payment on these instruments will be based on the performance of a reference index or equity share (detailed in the information memorandum of the issue).
Ind-Ra has continued to take a consolidated view of PVR and its subsidiaries while arriving at the rating, due to the close strategic and operational linkages among them.
PVR ended at Rs1,568.50 per piece up by Rs58.4 or 3.87%, after hitting 52-week high at Rs1,631.85 per piece on Sensex.