CARE revises credit ratings of Forbes -; Company's bank facilities; Stock gains ~2%

11 Mar 2022 , 10:54 AM

Forbes & Company Ltd has informed that CARE Rating has revised the credit rating and revised the outlook of the credit facilities of the company.

The long-term rating has been revised to CARE BBB-/Stable and short-term rating has been revised to CARE A3.

According to the rationale report, the above ratings were placed under ‘Credit Watch’ with positive implications, following the announcement of acquisition of major shareholding of its subsidiary, Eureka Forbes Ltd. (EFL) by Advent International. Since the exact impact of the above development on the credit quality of FCL could not be ascertained at that point of time, the ratings were placed on credit watch.

However, consequent to the detailed assessment of the same by CARE, the ratings have been removed from credit watch while assigning a ‘Stable’ outlook.

The revision in the ratings assigned to the bank facilities of FCL take into account improvement in liquidity and financial position with significant debt rationalization undertaken through asset monetization at the standalone level, shipping division as well pre-closure of term debt in the European subsidiary; Lux International AG (LIAG).

At around 10:59 AM, Forbes & Company was trading at Rs416 apiece up by Rs7.65 or 1.87% on the BSE.