Intimation under Reg 30 of SEBI (LODR) Regulations, 2015 - Credit rating
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Awaiting price reaction for this filing.
Infomerics Valuation and Rating Limited has downgraded and simultaneously withdrawn the credit ratings assigned to Paul Merchants' bank facilities. The downgrade reflects a decline in forex revenue, thin profitability margins tied to the trading nature of operations, and exposure to risks in the U.S. and Canadian markets. The rating was withdrawn at the company's own request, supported by No Objection Certificates and No Dues Certificates received from lenders, indicating the company has no outstanding obligations on these facilities. The company has also decided not to proceed with previously proposed bank facilities. Despite concerns, the rating was supported by promoters' experience, operational track record, and a comfortable capital structure, with Infomerics assigning a Stable outlook.
The downgrade highlights weakness in the company's core forex business and exposes it to currency/geopolitical risks, which is negative for sentiment. However, the withdrawal is company-initiated with cleared dues, suggesting an orderly debt cleanup rather than financial distress, which may cushion the negative impact on the stock.