ICRA upgrades Paradeep Phosphates' credit rating, outlook

11 Aug 2022 , 12:26 PM

Paradeep Phosphates Limited informed that the rating agency ICRA Limited has upgraded the credit rating of the company. It removed the rating from watch with negative implications and assigned a ‘Stable’ outlook.

ICRA had previously placed Paradeep Phosphates Limited’s (PPL) ratings on watch with negative implications after the company announced its plans to acquire Zuari Agro Chemicals Limited’s (ZACL) urea and phosphatic fertilizer assets, as the acquisition could lead to a moderation in the company’s return and credit metrics.

Total term loans reviewed by the ICRA have been enhanced from Rs824 crore to Rs2,000 crore and were assigned an ‘ICRA A’ rating.

Company’s fund-based facilities worth Rs3,000 crore (enhanced from Rs1,365 crore) were also given an ‘ICRA A’ rating with a Stable outlook.

ICRA also reviewed non-fund-based limits worth Rs9,000 crore (enhanced from Rs2,570 crore). It has given an ‘ICRA A1’ rating to the same. It’s rating also has been removed from watch with negative implications.

Company’s Commercial Paper programme worth Rs1,000 crore was also given an ‘ICRA A1’ rating.

At around 12.31 PM, Paradeep Phosphates was trading at Rs49.70, up by 0.10% against previous close of Rs49.65 on NSE.