Panama Petrochem Limited has informed the Exchange about Credit Rating
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ICRA Limited has reaffirmed the credit ratings on Panama Petrochem's bank facilities. The fund-based cash credit facility of Rs. 6 crore has been reaffirmed at [ICRA]A+ with a Stable outlook, while the non-fund based letter of credit facility of Rs. 118 crore has been reaffirmed at [ICRA]A1+. The total rated facilities amount to Rs. 124 crore. The reaffirmation reflects the company's established 35+ year track record in white oil business, diversified product portfolio across 80+ variants serving cosmetics, inks, rubber, textiles and other industries, and strong customer relationships with major FMCG players. Financially, the company maintains a comfortable profile with Total Debt/TNW of 0.03x and interest coverage of 20.9x in 9M FY2026. However, near-term challenges include volatility in crude-linked base oil prices, elevated freight costs and geopolitical tensions in West Asia impacting operations and customer ordering behaviour in Q4 FY2026 and FY2027. The Stable outlook reflects ICRA's view that cash flows will remain comfortable despite near-term pressures.
The reaffirmation of investment-grade ratings with a stable outlook signals a healthy credit profile. Shareholders can view this positively as it confirms the company's ability to service bank facilities, though near-term profitability may face headwinds from commodity price volatility and geopolitical disruptions.