CRISIL upgrades rating on JK Paper's facilities worth Rs2,576.50 crore; stock soars ~3.5%

20 Oct 2022 , 03:13 PM

CRISIL Ratings has upgraded the rating on JK Paper Limited’s long-term bank facilities, non-convertible debentures, and fixed deposits to ‘CRISIL AA/Stable’ from ‘CRISIL AA-/Stable.’

Further, its reaffirmed its ‘CRISIL A1+’ rating on the commercial paper programmes of the entity.

CRISIL informed that it has withdrawn its rating on the bank facilities amounting to Rs122.5 crore based on the request from the client and after receiving lenders no-due certificate. The rating agency highlighted that this rating action is in line with its withdrawal policy.

CRISIL has reviewed total bank loan facilities worth Rs2,576.50 crore.

The update represents a faster-than-expected increase in operational scale due to a large increase in the utilisation of the new central pulp mill (CPM) packaging board facility, which began commercial production on January 14, 2022. As a result, cash accrual is expected to be in the range of Rs700-800 crore for fiscal 2023, stated CRISIL in its rating rationale.

At around 3.15 PM, JK Paper was trading at Rs392.95 up by 3.39% from its previous closing of Rs380.05 on the BSE. The scrip touched intraday high and low of Rs392.95 and Rs378.10 respectively.

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