Arvind Mills commercial paper assigned P1+ rating by Crisil
By Our Corporate Bureau | 14 Jun 2003
Mumbai: The Rs 20 crore commercial paper programme of Arvind Mills has been assigned a P1+ rating by Crisil, which indicates a 'very strong' rating for the paper. According to Crisil, the rating is based on the unconditional and irrevocable standby facility provided by State Bank of Saurashtra to the extent of the rated amount.
The standby facility will be available for the entire duration of the commercial paper to make timely repayments. The rating on the Rs 25.36 crore non-convertible debenture has been upgraded to BB, indicating 'inadequate safety', from D, which falls in the 'default' category.
According to Crisil, the upgrade is based on the improvement in Arvind's business and financial profile. Following a debt restructuring programme, the company's total debt has come down by Rs 1,016 crore, including the principal write-offs of Rs 483 crore.
The rating on Arvind's Rs 72.72 crore non-convertible debenture has been withdrawn as the instrument has been restructured and fresh debentures issued. There are no outstanding obligations under the rated instrument.