CRISIL revises Aditya Birla Fashion's credit rating to ‘CRISIL AA/Positive'; stock adds ~1%

9 Jun 2022 , 10:33 AM

Aditya Birla Fashion Limited informed that CRISIL Ratings Limited has revised the credit rating of the company.

CRISIL has reviewed total bank facilities worth Rs2,500 crore of the company.

CRISIL Ratings has reaffirmed the long-term ratings at ‘CRISIL AA’. It has revised its outlook on the long-term bank facilities of the company to ‘Positive’ from ‘Stable’.

The short-term ratings of Rs2,000 crore commercial paper have been reaffirmed at ‘CRISIL A1+’.

The revision in outlook factors expectation of further strengthening of the financial risk profile led by equity infusion of Rs2,195 crore to be completed over fiscals 2023 and 2024, stated CRISIL in its rating rationale.

The board of ABFRL, on May 24, 2022, had approved a fresh equity infusion of Rs2,195 crore by way of 7.5% stake dilution on a post-issue basis to an affiliate (Caladium Investments Pte Ltd) of GIC, Singapore. The first tranche of Rs770 crore is expected in the first of this fiscal and balance Rs1,425 crore within 18 months of the 1st tranche.

Aditya Birla Fashion & Retail is currently trading at Rs258.70 up by Rs1.9 or 0.74% from its previous closing of Rs256.80 on the BSE. The scrip opened at Rs258 and has touched a high and low of Rs258.70 and Rs254.75 respectively.