CRISIL upgrades Amar Ujala rating for CP programme

MUMBAI: CRISIL has rated Amar Ujala Publications Ltd’s Rs 275 million commercial paper programme P1, upwards from P2. CRISIL has taken a consolidated view of the profiles of Amar Ujala and its captive printing unit, A and M Publications Ltd.

The revision is driven by an equity infusion of Rs 1.17 billion into Amar Ujala Publications through foreign direct investment in the last week of July.

The rating also considers Amar Ujala Publications’ strong market position, healthy expected operating cash flows, improving financial risk profile, and good operating efficiencies. The rating factors in the committed liquidity support of Rs 550 million to Amar Ujala Publications’ from ABN AMRO Bank, Singapore.

Amar Ujala, Amar Ujala Publications’ flagship publication, is among the top four Hindi dailies in India, in terms of both readership and circulation. Despite intense and growing competition, it enjoys a strong market position in Uttar Pradesh and Uttaranchal, and is second only to Dainik Jagran.