Fertilizers and Chemicals Travancore Limited has informed the Exchange about Credit Rating
FACT · price
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Awaiting price reaction for this filing.
Acuite Ratings has assigned a long-term rating of ACUITE A (Stable) on a Rs. 100 crore bank loan facility and a short-term rating of ACUITE A1 on Rs. 1,050 crore of bank loan facilities of FACT, totaling Rs. 1,150 crore. This is a first-time rating for the company, which is 90% owned by the Government of India and is a major fertilizer manufacturer in South India. The rating reflects FACT's strong market position, healthy financial risk profile (net worth of Rs. 1,375 crore, gearing of 1.31x in FY24), and strong liquidity (Rs. 2,005 crore in fixed deposits). The company has proposed financial restructuring of its outstanding loans (Rs. 1,770 crore principal plus Rs. 1,673 crore accrued interest) by waiving interest, converting some portion to equity, and repaying the balance in interest-free installments over 5-8 years, but this is awaiting Government of India approval.
The investment-grade rating with stable outlook is a positive signal for FACT's creditworthiness and could improve its access to bank funding. However, shareholders should monitor the pending debt restructuring proposal, as an adverse outcome could materially impact the company's financial risk profile in the near to medium term.