Brickwork upgrades 'BBB-/Stable' rating on Ganga Papers' bank loan facilities; Stock dives 5%

19 Jan 2022 , 01:15 PM

Brickwork Ratings has upgraded the ratings for the Bank Loan Facilities of Rs29.51cr of Ganga Paper India Ltd.

The long-term ratings has been upgraded to BWR BBB- (Stable) and short-term ratings has been upgraded to BWR A3.

As per rationale report, tpgrade in the ratings of Ganga Paper India Ltd. factors in growth in its revenues and improvement in overall business and financial risk profile in FY22.

The company has been diversifying its client base and has been focusing on the exports to China, the Middle East, Bangladesh, Sri Lanka, Portugal and the U.S., in addition to its regular domestic buyers, to offset the slowdown in the domestic market amidst the COVID 19 pandemic.

BWR believes the Ganga Paper India Ltd. ‘s business risk profile will be maintained over the medium term. The ‘Stable’ outlook indicates a low likelihood of rating change over the medium term.

At around 1:17 PM, Ganga Papers India was trading at Rs78.55 apiece down by Rs4.1 or 4.96% on the BSE.