Revised ICRA rating
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Awaiting price reaction for this filing.
ICRA has revised the credit rating on Andhra Petrochemicals' long-term facilities, downgrading them from [ICRA]A- (Negative) to [ICRA]BBB+ (Negative). This applies to Rs.57.18 crores of unallocated limits and Rs.35.00 crores of fund-based working capital facilities, totaling Rs.92.18 crores of long-term exposure. The short-term rating of [ICRA]A2+ on Rs.2.00 crores of non-fund based working capital facilities has been reaffirmed. The negative outlook on the long-term rating suggests ICRA sees further downside risk to the rating. The downgrade from A- to BBB+ moves the company closer to the lower investment grade boundary.
The downgrade signals weakening credit quality and may lead to higher borrowing costs for the company. Shareholders should view this as a negative credit signal, though the rating remains investment grade for now. The negative outlook implies another downgrade is possible if conditions don't improve.