Neogen Chemicals' Credit Rating Downgraded by CRISIL to A-/Negative
CRISIL has downgraded Neogen Chemicals' credit rating to A-/Negative from A/Negative and its short-term rating to A2+ from A1. Neogen Ionics Limited's rating was also downgraded to BBB+/Negative from A-/Negative. The downgrades are attributed to delays in the battery chemicals project and insurance claim receipt.
A downgrade in credit rating can significantly impact a company's ability to raise debt, increase borrowing costs, and affect investor confidence, leading to a high impact.
The credit rating for Neogen Chemicals Limited and its subsidiary has been downgraded by CRISIL, indicating a negative development for the company's financial standing and borrowing capabilities.
Neogen Chemicals Limited and its wholly owned subsidiary, Neogen Ionics Limited, have had their credit ratings reviewed by CRISIL Ratings Limited. The rating for Neogen Chemicals Limited's total bank loan facilities of ₹680 Crore has been revised from CRISIL A/Negative to CRISIL A-/Negative. The short-term rating has also been revised from CRISIL A1 to CRISIL A2+.
Similarly, the rating for Neogen Ionics Limited's total bank loan facilities of ₹1,150 Crore has been downgraded. The long-term rating for Neogen Ionics Limited has been revised from CRISIL A-/Negative to CRISIL BBB+/Negative.
CRISIL cited delays in the battery chemicals project and the delayed receipt of an insurance claim as reasons for the downgrade of Neogen Chemicals Limited. The revision in Neogen Ionics Limited's rating reflects the similar action taken on its parent company.
The company has provided links to the detailed rating rationales for both Neogen Chemicals Limited and Neogen Ionics Limited. This information is also being uploaded to the company's website.
What to do with a filing like this
Neogen Chemicals Limited filed this with the NSE as a statutory disclosure, categorised under credit ratings. It is a primary document, not a recommendation, and the desk marks it high impact, which is the band that most often changes something.
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See the model portfoliosA plain-language summary of a public exchange filing by Neogen Chemicals Limited. Read the original for the full detail.