Ind-Ra Withdraws Future Retail’s Ratings
March 2015: India Ratings & Research (Ind-Ra) has withdrawn
Future Retail Limited’s (FRL) Long-Term Issuer Rating of ‘IND
A-’. The Outlook was Stable. A full list of rating actions is
at the end of this commentary.
The ratings have been withdrawn pursuant to clause 16 sub-clause 3 of the SEBI Credit Rating Agency’s Regulations 1999, which provides that, “a credit rating agency shall not withdraw a rating so long as the obligations under the security rated by it are outstanding, except where the company whose security is rated is wound up or merged or amalgamated with another company”.
In this case, the company has transferred the Pantaloons format business to Pantaloons Fashion Retail Limited (PRFL) and the fashions business to Future Lifestyle and Fashion Limited (FLFL) along-with all the respective assets and liabilities. The agency notes that the term loans and working capital limits have also been transferred to PRFL and FLFL respectively. Of the INR5bn non-convertible debenture (NCDs), NCDs worth INR2.5bn have been paid in full and the balance has been transferred to FLFL.
Ind-Ra will no longer provide ratings or analytical coverage for FRL.
- Long-Term Issuer Rating: ‘IND A-’; rating withdrawn
- INR 7,965.4m long-term loans: ‘IND A-’; rating withdrawn
- INR13,500m working capital limits: Long-Term ‘IND A-’ and Short-Term ‘IND A1’; rating withdrawn
- INR5bn NCDs: Long-Term ‘IND A-’; rating withdrawn
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Applicable criteria, ‘Corporate Rating Methodology’, dated 12 September 2012, are available at www.indiaratings.co.in.
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