Ind-Ra Withdraws Future Retail’s Ratings

Ind-Ra-Mumbai-12 March 2015: India Ratings & Research (Ind-Ra) has withdrawn Future Retail Limited’s (FRL) Long-Term Issuer Rating of ‘IND A-’.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The ratings have been withdrawn pursuant to clause 16 sub-clause 3 of the SEBI Credit Rating Agency’s Regulations 1999, which provides that, “a credit rating agency shall not withdraw a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.

FRL’s ratings:
- Long-Term Issuer Rating: ‘IND A-’; rating withdrawn
- INR 7,965.4m long-term loans: ‘IND A-’; rating withdrawn
- INR13,500m working capital limits: Long-Term ‘IND A-’ and Short-Term ‘IND A1’; rating withdrawn
- INR5bn NCDs: Long-Term ‘IND A-’; rating withdrawn

Contacts:
Primary Analyst
Janhavi Prabhu
Analyst
+91 22 4000 1754
India Ratings & Research Pvt Ltd
Wockhardt Towers, Level 4, West Wing
Bandra Kurla Complex, Bandra (East)
Mumbai - 400 051

Secondary Analyst
Priyanka Poddar
Analyst
+91 22 4000 1752

Committee Chairperson
Kishore Gandhi
Chief Credit Officer
+91 22 4000 1755

Media Relations: Saraanya Shetty, Mumbai, Tel: + 91 22 4000 1729, Email: saraanya.shetty@indiaratings.co.in.

Additional information is available at www.indiaratings.co.in. The ratings above were solicited by, or on behalf of, the issuer, and therefore, India Ratings has been compensated for the provision of the ratings. The issuer did not participate in the rating process, or provide additional information, beyond the issuer's available public disclosure.

Ratings are not a recommendation or suggestion, directly or indirectly, to you or any other person, to buy, sell, make or hold any investment, loan or security or to undertake any investment strategy with respect to any investment, loan or security or any issuer.

Applicable criteria, ‘Corporate Rating Methodology’, dated 12 September 2012, are available at www.indiaratings.co.in.

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India Ratings & Research (India Ratings) has six rating offices located at Mumbai, Delhi, Chennai, Kolkata, Bangalore and Hyderabad. India Ratings is recognised by Reserve Bank of India, Securities Exchange Board of India (SEBI) and National Housing Bank.

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