CRISIL upgrades 'AA-/Stable' rating on Hatsun Agro Products' long-term bank facilities

16 Feb 2022 , 11:29 AM

CRISIL Ratings has upgraded the ratings on the bank facilities of Hatsun Agro Products Limited (HAP) to ‘CRISIL AA-/Stable/CRISIL A1+’ from CRISIL A+/Positive/CRISIL A1.

As per rationale report, the rating upgrade reflects CRISIL Rating’s belief that HAP’s credit risk profile shall remain healthy over the medium term, driven by its strong business presence and geographical diversification initiatives.

The ratings continue to reflect Hatsun’s leading market position in the dairy sector supported by strong brand, particularly in South India; healthy operating efficiency backed by established procurement and distribution networks; and a diversified product portfolio.

The ratings also consider a strong financial risk profile with comfortable capital structure and robust debt protection metrics. These strengths are partially offset exposure to risks related to entry into new geographies and susceptibility to changes in environmental conditions.

CRISIL Ratings believes Hatsun’s business risk profile shall continue to remain strong while financial risk profile will continue to witness sustainable improvement.

At around 11:30 AM, Hatsun Agro Product was trading at Rs1,142.15 apiece up by Rs22.15 or 1.98% on Sensex.