Credit Rating Updates
PML · price
▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.
Awaiting price reaction for this filing.
Paul Merchants Ltd (PML) has received a credit rating downgrade from Infomerics Valuation and Rating Pvt Ltd. The long-term rating on its fund-based working capital facilities of ₹18 crore has been cut from IVR BBB+/Negative to IVR BBB/Negative. A similar downgrade was applied to the long-term portion of proposed loans worth ₹11.75 crore. The short-term rating on bank guarantee facilities of ₹2 crore was reaffirmed at IVR A3+. In total, ₹31.75 crore of bank facilities are affected. Infomerics cited sustained deterioration in PML's earnings over the last four quarters, driven by lower forex income as migration of students and workers to the USA, Canada, and Europe has declined due to geopolitical tensions and policy changes. The company has said it is filing an appeal against the downgrade.
This is a negative signal for shareholders, as a rating downgrade raises the cost of borrowing and reflects ongoing business weakness in PML's core forex/remittance segment. However, the company remains in the investment-grade category, and the rating agency acknowledged the promoters' experience and comfortable capital structure as positives. Investors should monitor the appeal outcome and upcoming quarterly results closely.