Ind-Ra revises rating outlook of West Coast Paper's debt instruments

10 Jun 2022 , 02:10 PM

India Ratings and Research (Ind-Ra) has revised West Coast Paper Mills Limited’s (WCPM) Outlook to Positive from Stable. The rating agency has affirmed the Long-Term Issuer Rating at ‘IND AA-’.

Company’s fund-based limits worth Rs290 crore have been assigned ‘IND AA-’ rating with a positive outlook. Non-fund-based limits worth Rs335 crore have been assigned ‘Ind A1+’ rating by Ind-Ra.

Short-term loan worth Rs32 crore has been assigned an ‘Ind A1+’ rating. Proposed bank loan worth Rs183 crore is assigned ‘IND AA-/IND A1+’ rating. The outlook for the same has been revised from Positive to Stable.

The Positive Outlook reflects Ind-Ra’s expectation of sustained growth in the consolidated revenue and the maintaining of strong profitability and credit metrics, as the benefits of the improvement in business profile post the acquisition of APL have kicked in with the recovery in demand, stated Ind-Ra in its rationale.

At around 2.14 PM, West Coast Paper Mills was trading at Rs337.95 down by Rs3.4 or 1% from its previous closing of Rs341.35 on the BSE.