Intimation of withdrawal of Crisil rating at the Company''s request
DREAMFOLKS · price
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Dreamfolks Services Ltd has voluntarily requested Crisil Ratings to withdraw credit ratings on its bank facilities worth Rs. 145 crore. The company stated it has adequate internal accruals and liquidity to manage operations and is discussing rationalisation of working capital limits with bankers. However, the Crisil letter reveals that before withdrawal, the long-term rating had been downgraded from BBB-/Stable to BB+/Watch Developing, and short-term rating from A3 to A4+/Watch Developing—both placed on 'Rating Watch with Developing Implications'. The ratings were withdrawn at company's request with banker no-objection.
The voluntary withdrawal of ratings after a downgrade and placement on negative watch suggests potential credit quality concerns. Investors should monitor for any signs of liquidity stress or working capital issues, as the company appears to be reducing transparency on its debt obligations.