Please find enclosed announcement pertaining to Credit Ratings
PANAMAPET · price
▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.
ICRA Limited has reaffirmed Panama Petrochem's credit ratings on its bank facilities. The fund-based cash credit rating remains at [ICRA]A+ with a Stable outlook, while the non-fund based letter of credit rating stays at [ICRA]A1+. The total rated facilities amount to Rs. 124 crore (Rs. 6 crore fund-based and Rs. 118 crore non-fund based). The reaffirmation reflects the company's established 35+ year track record, diversified product portfolio serving multiple industries, strong customer base including FMCG players, and comfortable financial risk profile with low leverage (Total Debt/TNW at 0.03x) and strong interest coverage (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 affecting operations at its UAE subsidiary.
The reaffirmation of investment-grade ratings indicates stable creditworthiness and low default risk. Shareholders can view this positively as the company maintains strong financial metrics and banking relationships, though near-term profitability may face pressure from input cost volatility.