Addendum to the Previous Intimation to BSE on 05.02.2026" on Credit Rating obtained for Bank Loan & Fixed Deposits facilities" vide Ack. No: 12064754 Reference to BSE mail dated 06.02.2026 ....
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Awaiting price reaction for this filing.
Sambandam Spinning Mills has received a credit rating downgrade from Infomerics Valuation and Ratings across all its facilities. Long-term bank facilities of Rs. 94.32 crore were cut from IVR BB+/Stable to IVR BB/Stable, and short-term bank facilities of Rs. 9.25 crore slipped from IVR A4+ to IVR A4. The Rs. 12 crore fixed deposit programme was also downgraded from BB+/Stable to BB/Stable, taking total rated facilities to Rs. 103.57 crore. The agency cited weak liquidity and debt protection metrics in FY25 as the key reason, noting that operational improvements were not enough to offset financial stress. Constraints around raw material price volatility, working capital intensity, and intense industry competition continue to weigh on the rating, though promoter experience and an established textile business provide some support.
This downgrade signals rising financial stress and weaker debt-servicing ability, which may push up future borrowing costs for the company. For shareholders and fixed deposit holders, it points to higher credit risk and reduced safety of the FD instrument, warranting closer monitoring of the company's liquidity and cash flow health.