Infomerics Valuation and Rating Ltd. has reaffirmed current ratings on long term and short term bank facilities being availed by the compnay
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Awaiting price reaction for this filing.
Despite the company headline stating that ratings were 'reaffirmed', the actual Infomerics letter dated 18 August 2025 shows a downgrade across all three facilities. Long-term bank facilities of Rs 78.90 crore were cut from IVR BBB/Negative to IVR BBB-/Negative (Triple B Minus with Negative Outlook). Short-term facilities of Rs 15.50 crore and proposed short-term facilities of Rs 5.60 crore were both cut from IVR A3+ to IVR A3. The downgrade came after a review of Q1FY26 operational and financial performance. Total bank facilities under review stand at Rs 100 crore, with State Bank of India and Canara Bank as lenders.
This is negative for shareholders and lenders. The downgrade raises Milkfood's borrowing costs and signals weaker credit quality, though the ratings remain in investment-grade territory (BBB- is still investment grade). The negative outlook suggests further downside risk if performance doesn't improve, which could weigh on the stock sentiment.