CRISIL Ratings has reaffirmed its ‘CRISIL A1+’ rating on the the Commercial Paper programme of
Birla Corporation Ltd .
Additionally, CRISIL Ratings has withdrawn its long term rating on the Rs280cr NCDs of BCL on receipt of confirmation of their redemption by the debenture trustee and on the company’s request.
The withdrawal is in line with the rating withdrawal policy of CRISIL Ratings.
The rating continues to reflect the company's established position in the cement industry and high financial flexibility. These strengths are partially offset by a leveraged capital structure, exposure to project funding and execution risks, and susceptibility to fluctuations in input costs and to cyclicality in the cement industry
To arrive at the rating, CRISIL Ratings has combined the business and financial risk profiles of BCL and RCCPL and the other subsidiaries.
The acquisition of RCCPL was strategic for BCL, and therefore the latter is expected to extend financial, operational, and management support to RCCPL when required.
At around 1:12 PM, Birla Corporation was trading at Rs1,240.45 apiece down by Rs10 or 0.8% on Sensex.