National Fertilizers' debt instruments worth Rs100 billion receives rating from Ind-Ra; stock jumps ~1.5%

26 Apr 2022 , 09:42 AM

India Research and & Research Pvt. Limited has reviewed the debt instruments of National Fertilizers Limited and has affirmed the ratings assigned to such instruments.

The rating agency has reviewed fund-based working capital limits worth Rs40 billion and affirmed the rating at ‘Ind AA/Ind A1+’ along with a stable outlook on the same.

Ind-Ra has assigned the ‘Ind A1+’ rating to the Non-fund-based working capital limits of the company worth Rs20 billion.

It has also reviewed the commercial paper worth Rs40 billion of the company and has assigned ‘Ind A1+’ rating to the same.

CP 1s w1thm the fund-based working capital limits. CP program and fund-based working capital limits are interchangeable with total borrowing capped at lower of the drawing power or the sanctioned fund-based limit.

To arrive at the ratings, Ind-Ra continues to take a bottom-up approach, factoring in the consolidated profile of NFL and its joint ventures (Urvarak Videsh Limited and Ramagundam Fertilizers and Chemicals Limited.

At around 9.45 AM, National Fertilizer was trading at Rs60.60 up by Rs0.8 or 1.34% from its previous closing of Rs59.80 on the BSE.