India Ratings cut Long Term Issuer Rating on Jain Irrigation: Media report

India Rating also placed the company on ‘Rating Watch Negative’ (RWN).

Jun 19, 2019 03:06 IST India Infoline News Service

Jain Irrigation
Jain Irrigation will remain in focus on Wednesday as an Economic Times report stated that India Ratings and Research downgraded the company’s long-term issuer rating to ‘IND BBB’ from ‘IND A-’ while placing it on ‘Rating Watch Negative’ (RWN).

As per media reports, the company in the last week clarified that it has not defaulted on any of its debt obligations and stated it was confident of executing its plan to bring down its debt by Rs2,000cr. Jain Irrigation is planning to sell its pipes or food business to reduce the debt. Its overall debt is about Rs4,900cr of which Rs1,400cr is in the form of long term bonds due in February 2022. A significant portion of the debt is working capital in nature. 

Jain Irrigation Systems Ltd ended at Rs27.40, down by Rs7.35 or 21.15%, from its previous close of Rs34.75 on the BSE.
The scrip opened at Rs34.70 and touched a high and low of Rs35.55 and Rs25.45, respectively. A total of 6,04,77,812 (NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs1,401.43cr.

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