CRISIL upgrades long-term credit rating of Varun Beverages; reviews instruments worth Rs3,122.80 crore

27 May 2022 , 12:25 PM

Varun Beverages Limited informed that CRISIL Ratings has upgraded its rating on the long-term bank facilities of the company. The rating agency has upgraded the rating to ‘CRISIL AA+’ from ‘CRISIL AA’ and revised the outlook to ‘Stable’ from ‘Positive’.

The rating on the commercial paper program has been reaffirmed at ‘CRISIL A1+’.

Total long-term bank facilities reviewed stood at Rs3,122.80 crore.

CRISIL has assigned a short-term rating worth Rs250 crore to Commercial Paper.

The upgrade reflects the expectation of strengthening the group’s business and financial risk profiles over the medium term. The group’s performance during 2022 (January to December) is likely to benefit from favourable peak summer season, the full potential of the territories acquired in 2019, and enhanced capacities in Bihar and Sandila plants which got operational in March 2022.

Varun Beverages currently trading at Rs1,088 up by Rs16.9 or 1.58% from its previous closing of Rs1,071.10 on the BSE. The scrip opened at Rs1,085 and has touched intraday high and low of Rs1,098 and Rs1,079.45 respectively.