The Ruby Mills Limited has informed the Exchange about Credit Rating- Revision
RUBYMILLS · price
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India Ratings and Research has upgraded The Ruby Mills's bank loan facilities from BBB- to IND BBB, while placing the rating on Rating Watch with Developing Implications. The loan facilities of INR 2,500 million are from Union Bank of India as a term loan. The upgrade reflects the company's stable lease rental income from reputed tenants like Ernst & Young, Cathay Pacific, and DSP Asset Managers, along with a ring-fenced cash flow structure and debt service reserve account. However, the company took on a new lease rental discounting loan of INR 2,500 million in December 2024, which pushed net leverage up to 4.91x in FY25 from 2.53x in FY24. The Rating Watch stems from uncertainty over revenue recognition following a new agreement that may transfer ownership of certain floors to the company. The watch will be resolved once the MoA with Mindset Estates Pvt Ltd is executed.
This is a positive credit event for shareholders as the upgrade signals improved lender confidence in the company's financial profile, though the Developing Watch adds some near-term uncertainty tied to the pending real estate agreement. The higher debt load from the new term loan may pressure interest coverage in the coming years.