Ranbaxy Fine Chemicals Ltd
01 Mar 2000
- Commercial paper programme - Rs. 10 crore
Rating : P1+
A ‘P1+’ (pronounced P one plus) rating has been assigned to the Rs. 100 million commercial paper programme of Ranbaxy Fine Chemicals Limited (RFCL).
The rating primarily factors in the support derived by RFCL from its parent - Ranbaxy Laboratories Limited (rated AAA for its long term debt by CRISIL). The rating also takes into account the company’s established position in the domestic reagents business and limited requirement of funds towards capital expenditure. These factors are partly offset by relatively small size of the company, low profitability, and high level of gearing. RFCL’s ability to successfully grow in other business segments (mainly pharmaceutical fine chemicals) would help it diversify its revenue streams.
RFCL, a 100% subsidiary of Ranbaxy Laboratories Limited (RLL), is engaged in the business of reagents, process chemicals, pharmaceutical fine chemicals, and speciality chemicals. During the nine-month period ending December 31, 1998, the reagents business accounted for around 66% of the company’s turnover of Rs. 276 million.