Aditya Birla Fashion and Retail Ltd: Update on CRISIL Ratings for Debt Facilities and Instruments
Aditya Birla Fashion and Retail Ltd (ABFRL) received multiple updates regarding its debt instruments from CRISIL Ratings Limited. The ratings actions covered various facilities, including bank loans, commercial paper, and non-convertible debentures (NCDs), detailing both reaffirmations and withdrawals of ratings.In several dispatches, CRISIL Ratings reaffirmed the ratings on certain key instruments, noting that securities with these ratings are considered to carry very low credit risk and a high degree of safety regarding timely servicing of financial obligations.
Bank Loan Facilities Rating Actions
The ratings review for bank loan facilities saw both reaffirmations and withdrawals across different amounts and periods.On one occasion, the rating stood at a total of Rs. 873 Crore, where CRISIL Ratings reaffirmed the Long Term Rating and Short Term Rating for Bank Loan Facilities.
| Facility Category | Total Amount Rated | Long Term Rating | Short Term Rating |
|---|---|---|---|
| Bank Loan Facilities | Rs. 873 Crore | CRISIL AA+/Stable (Reaffirmed) | CRISIL A1+ (Reaffirmed) |
However, subsequent ratings reviews covered a larger outstanding amount of Rs. 1967 Crore for bank loan facilities, during which the ratings were withdrawn.
| Facility Category | Total Amount Rated | Long Term Rating | Short Term Rating |
|---|---|---|---|
| Bank Loan Facilities | Rs. 1967 Crore | CRISIL AA+/Stable (Withdrawn) | CRISIL A1+ (Withdrawn) |
The details of the bank facilities rated during the review period included the following amounts and institutions:
| Bank Facility Type | Bank | Amount (Rs. in Crore) | Outstanding Rating |
|---|---|---|---|
| Fund-Based Facilities | HDFC Bank Limited | 100 | Crisil AA+/Stable |
| Fund-Based Facilities | State Bank of India | 150 | Crisil AA+/Stable |
| Fund-Based Facilities | The Federal Bank Limited | 100 | Crisil AA+/Stable |
| Fund-Based Facilities | Axis Bank Limited | 133 | Crisil AA+/Stable |
| Non-Fund Based Limit | ICICI Bank Limited | 110 | Crisil A1+ |
| Non-Fund Based Limit | HDFC Bank Limited | 170 | Crisil A1+ |
| Total | 873 |
Specific Instrument Ratings
Separate reviews reaffirmed the ratings for other debt instruments:- Non-Convertible Debentures (NCDs): The rating for NCDs was reaffirmed at Crisil AA+/Stable for two separate tranches: one worth Rs. 350 Crore and another worth Rs. 400 Crore.
- Commercial Paper: The rating for the Rs. 500 Crore Commercial Paper was reaffirmed at Crisil Al+.
Summary of Key Rating Actions
The following table summarizes the various rating actions for specific instruments:| Instrument Type | Principal Amount | Rating Status | Rating Assigned |
|---|---|---|---|
| Bank Loan Facilities | Rs. 1967 Crore | Withdrawn | Long Term: Crisil AA+/Stable; Short Term: Crisil A1+ |
| Commercial Paper | Rs. 500 Crore | Reaffirmed | Crisil Al+ |
| NCDs | Rs. 350 Crore | Reaffirmed | Crisil AA+/Stable |
| NCDs | Rs. 400 Crore | Reaffirmed | Crisil AA+/Stable |
ABFRL Stock Price Movement
Aditya Birla Fashion and Retail Limited shares today slipped by 2.49% to settle at ₹63.2. The stock saw heavy activity, with the total traded volume reaching nearly 3 million shares, indicating selling pressure throughout the session.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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