CARE assigns ‘AA+’ to Tata Chemicals NCDs
CARE has assigned ‘CARE AA+’ rating to the Rs 240 crore non-convertible debenture issue of Tata Chemicals Ltd having tenure up to five years with bullet repayment at the end of fifth year, that is, in FY14.
By ET Online |
MUMBAI: CARE has assigned ���CARE AA+��� rating to the Rs 240 crore non-convertible debenture issue of Tata Chemicals Ltd having tenure up to five years with bullet repayment at the end of fifth year, that is, in FY14.
Instruments rated ���CARE AA��� are considered to offer high safety for timely servicing of debt obligations, and carry very low credit risk.
The CARE rating derives strength from the well-established promoter group, diversified product profile, the favourable competitive position Tata Chemicals enjoys in its core businesses due to well-integrated & largest soda ash facility in India and cost leadership in fertilisers segment on account of efficient production operations.
Further, the rating also factors in the leading position of the company in soda ash business globally (second largest) with major proportion of facilities being natural soda ash and geographically-spread operations spanning four continents.
Healthy profitability, moderate leverage (standalone basis) and comfortable interest coverage further adds strength to the rating.
The rating also factors in a largely debt-funded acquisition of General Chemicals Industries Product, which has resulted in a higher leverage at the consolidated level.
Tata Chemicals��� ability to maintain the profitability margins especially in the current economic environment characterised by the slowdown in demand especially for soda ash segment remains to be the key rating sensitivity.
Tata Chemicals operates in two business segments viz. inorganic chemicals and crop nutrition & agri business. It is one of the largest producers of inorganic chemicals in India with various products like soda ash, sodium bicarbonate, cement, salt and sodium tri poly phosphate.
Friday on NSE, shares of Tata Chemicals were down 4.71 per cent at Rs 166.90.
Instruments rated ���CARE AA��� are considered to offer high safety for timely servicing of debt obligations, and carry very low credit risk.
The CARE rating derives strength from the well-established promoter group, diversified product profile, the favourable competitive position Tata Chemicals enjoys in its core businesses due to well-integrated & largest soda ash facility in India and cost leadership in fertilisers segment on account of efficient production operations.
Further, the rating also factors in the leading position of the company in soda ash business globally (second largest) with major proportion of facilities being natural soda ash and geographically-spread operations spanning four continents.
Healthy profitability, moderate leverage (standalone basis) and comfortable interest coverage further adds strength to the rating.
The rating also factors in a largely debt-funded acquisition of General Chemicals Industries Product, which has resulted in a higher leverage at the consolidated level.
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Tata Chemicals��� ability to maintain the profitability margins especially in the current economic environment characterised by the slowdown in demand especially for soda ash segment remains to be the key rating sensitivity.
Tata Chemicals operates in two business segments viz. inorganic chemicals and crop nutrition & agri business. It is one of the largest producers of inorganic chemicals in India with various products like soda ash, sodium bicarbonate, cement, salt and sodium tri poly phosphate.
Friday on NSE, shares of Tata Chemicals were down 4.71 per cent at Rs 166.90.
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