CRISIL Ratings has assigned its ‘CRISIL AA/Stable’ rating to the long-term bank facilities and non-convertible debenture programme of
Jubilant Ingrevia Limited (JVL), and ‘CRISIL A1+’ rating to the commercial paper programme.
According to the rationale, the ratings reflect JVL's healthy business risk profile supported by leading market position across most products and vertically integrated operations, diversified revenue profile across business segments, geographies and end-user industries.
The ratings also factor in JVL’s adequate and improving financial risk profile, supported by healthy capital structure.
These strengths are partially offset by moderate working capital requirement, and exposure to fluctuations in input prices as well as government policies.
CRISIL Ratings has combined the business and financial risk profiles of JVL and all its subsidiaries, collectively referred to as the JVL group, as all the entities are under a common management and have operational linkages and fungible cash flow.