CARE revises Take Solutions issuer rating to BB+; stock ends flat

CARE revised the credit rating of Take Solutions Limited to BB+ (Issuer Rating) with Negative outlook, from BBB (Issuer Rating) with Negative outlook.

“The revision in the rating assigned to TAKE Solutions Limited (TAKE) takes into account the tightening liquidity position in the group marked by over dues extending beyond 30 days in the packing credit facility in one of its subsidiaries, Navitas LLP.

While CARE notes that the over dues have since been regularized, the operating environment for the Take group continues to remain challenging further accentuated by the fresh wave of lockdown restrictions being imposed globally. Challenging operating environment is expected to result in lower site utilizations and put pressure on the liquidity position of the company in the near term,” company shared CARE ratings rationale in a regulatory filing on Wednesday.

It further said, the company has been exploring various options including capital raising a subsidiary level, however, nothing material has fructified till date and with higher repayments coming up in the near term the liquidity position is expected to remain stressed.