Acuite assigns ratings on Refex Industries bank loan facilities; Stock dips 1.5%

21 Jan 2022 , 12:18 PM

Acuite Ratings & Research Limited has assigned its long-term rating of ‘ACUITE BBB+’ and short term rating of ‘ACUITE A2’ on the Rs40cr bank facilities of Refex Industries Limited (RIL). The outlook is ‘Stable’.

The long-term Bank Loan Ratings Rs15cr have been assigned at ACUITE BBB+/Stable while short-term Bank Loan Ratings Rs25cr have been assigned at ACUITE A2.

“The rating takes into account RIL’s moderate business risk profile marked by experienced promoters, its established track record across Chhattisgarh, Maharashtra, and Tamil Nadu.

The rating also factors in its healthy financial risk profile marked by a healthy net worth and almost ‘nil’ gearing along with moderate debt protection metrics. These strengths are partially constrained by its high counterparty risk, presence of high supplier and geographical concentration risk in revenue profile and competitive environment in industry,” company shared Acuite’s rating rationale in a filing on Thursday.

At around 12.21 pm, Refex Industries Ltd was trading at Rs135.75 per share down by Rs2.25 or 1.63% from its previous closing of Rs138 per share on the BSE.