By Subramanian Vasudevan

India Ratings and Research (Ind-Ra) has affirmed Aegan Industries Private Limited’s (AIPL) Long-Term Issuer Rating at ‘IND D(ISSUER NOT COOPERATING)’. The issuer did not participate in the rating exercise despite continuous requests and follow-ups by the agency. Thus, the ratings are on the basis of best available information. Therefore, investors and other users are advised to take appropriate caution while using these ratings. The instrument-wise rating actions are given below:

Instrument Type

Date of Issuance

Coupon Rate (%)

Maturity Date

Size of Issue (million)

Rating

Rating Action

Term loan (long-term)

-

-

March 2020

INR268

IND D(ISSUER NOT COOPERATING)

Affirmed

Fund-based working capital limits (long-term/short-term

-

-

-

INR450

IND D(ISSUER NOT COOPERATING)

Affirmed

Non-fund-based working capital limits (short-term)

-

-

-

INR101

IND D(ISSUER NOT COOPERATING)

Affirmed

 

Note: ISSUER NOT COOPERATING: Issuer did not cooperate; based on the best available information

KEY RATING DRIVERS

The affirmation reflects continuous delays in debt servicing from September 2017. The agency has received a confirmation from lenders that AIPL has been categorised as a non-performing asset.


RATING SENSITIVITIES

Positive: Timely debt servicing for at least three consecutive months will be positive for the ratings.


COMPANY PROFILE

Incorporated in 2008, AIPL is a cotton yarn manufacturer and exporter with an installed capacity of 25,920 spindles.


RATING HISTORY

Instrument Type

Current Rating

Historical Rating/Outlook

Rating Type

Rated Limits (million)

Rating

25 September 2017

14 September 2017

28 July 2016

Issuer rating

Long-term

-

IND D(ISSUER NOT COOPERATING

IND D(ISSUER NOT COOPERATING

IND D(ISSUER NOT COOPERATING

IND BB+/Stable

Term loan

Long-term

INR268

IND D(ISSUER NOT COOPERATING

IND D(ISSUER NOT COOPERATING

IND D(ISSUER NOT COOPERATING

IND BB+/Stable

Fund-based facilities

Long-term/Short-term

INR450

IND D(ISSUER NOT COOPERATING)

IND D(ISSUER NOT COOPERATING)

IND D(ISSUER NOT COOPERATING)

IND BB+/Stable/IND A4+

Non-fund-based facilities

Short-term

INR101

IND D(ISSUER NOT COOPERATING)

IND D(ISSUER NOT COOPERATING)

IND D(ISSUER NOT COOPERATING)

IND A4+


COMPLEXITY LEVEL OF INSTRUMENTS

For details on the complexity level of the instruments, please visit https://www.indiaratings.co.in/complexity-indicators.

SOLICITATION DISCLOSURES

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. 

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.

ABOUT INDIA RATINGS AND RESEARCH

About India Ratings and Research: India Ratings and Research (Ind-Ra) is India's most respected credit rating agency committed to providing India's credit markets accurate, timely and prospective credit opinions. Built on a foundation of independent thinking, rigorous analytics, and an open and balanced approach towards credit research, Ind-Ra has grown rapidly during the past decade, gaining significant market presence in India's fixed income market. 

Ind-Ra currently maintains coverage of corporate issuers, financial institutions (including banks and insurance companies), finance and leasing companies, managed funds, urban local bodies and project finance companies. 

Headquartered in Mumbai, Ind-Ra has seven branch offices located in Ahmedabad, Bengaluru, Chennai, Delhi, Hyderabad, Kolkata and Pune. Ind-Ra is recognised by the Securities and Exchange Board of India, the Reserve Bank of India and National Housing Bank. 

India Ratings is a 100% owned subsidiary of the Fitch Group.

For more information, visit www.indiaratings.co.in.

DISCLAIMER

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Applicable Criteria

Analyst Names

  • Primary Analyst

    Subramanian Vasudevan

    Analyst
    India Ratings and Research Pvt Ltd Harmony Square 3rd Floor, Door No. 48 & 50 Prakasam Street T Nagar Chennai - 600017
    +91 44 43401733

    Media Relation

    Namita Sharma

    Manager – Corporate Communication
    +91 22 40356121