Sundaram Multi Pap Limited has informed the Exchange about Credit Rating
SUNDARAM · price
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Awaiting price reaction for this filing.
CRISIL Ratings has assigned a credit rating of BB-/Stable (Issuer Not Cooperating) to Sundaram Multi Pap Limited's bank facilities worth Rs. 40 crore. The rating was given based on publicly available information as the company did not cooperate with CRISIL's requests for data. The company had already submitted a formal request for rating withdrawal, and CRISIL has since withdrawn the rating after receiving a no-dues certificate from Karur Vysya Bank and no-objection certificates from other lenders, indicating the loans have been settled. The company's financials show FY24 revenue of Rs. 127.05 crore but a loss of Rs. 5.07 crore, with weak interest coverage of 1.17 times. Historically, the company had a CRISIL D (default) rating in 2022, which was later upgraded to BB-/Stable.
The BB- rating is below investment grade (junk category), reflecting weak creditworthiness, though the rating is now withdrawn. The loan settlement with banks (evidenced by no-dues certificate and NOCs) is a positive sign, but underlying profitability concerns and history of default raise caution for investors.