CARE revises rating on Adani Wilmar's bank facilities worth Rs15,711 crore

27 Jul 2022 , 01:14 PM

Adani Wilmar Limited informed that the credit rating agency CARE Limited revised the rating assigned to the company’s long-term bank facilities.

CARE has revised the long-term rating to ‘CARE AA-’ from the existing ‘CARE A+’, with a Stable outlook on the same.

Rating on Short-term bank facilities of the company reaffirmed at ‘CARE A1+’.

Further, CARE also reaffirmed the ‘CARE A1+’ rating on the company’s Commercial Paper worth Rs500 crore.

Total facilities reviewed, excluding commercial paper, have been enhanced to Rs15,711 crore from Rs11,950 crore.

CARE highlighted in its rating rationale that the revision in the ratings assigned to Adani Wilmar Limited’s (AWL) bank facilities and short-term instruments takes into account AWL’s increased capital base and strengthened financial flexibility following the successful raising of funds of Rs3,600 crore through an initial public offering (IPO).

It further outlined that raising equity has increased the AWL’s networth base to Rs7,369 crore as of March 31, 2022, which, combined with the prepayment of a large portion of its term debt, has resulted in a significant improvement in leverage, as measured by total outside liabilities (TOL) to tangible networth (TNW) of 1.47 times as of March 31, 2022, compared to TOL/TNW of 2.84 times as of March 31, 2021.

At around 1.17 PM, Adani Wilmar was trading 0.95% lower at Rs628 per piece, against its previous close of Rs634.05 on NSE.