Neogen Chemicals Rating Downgraded by CRISIL to A-/Negative; A2+ Short Term
CRISIL has downgraded Neogen Chemicals Limited's long-term rating to A-/Negative and short-term rating to A2+. This is due to delays in the battery chemicals project and insurance claims. Neogen Ionics Limited's long-term rating is now BBB+/Negative. The total rated bank facilities for Neogen Chemicals stand at ₹680 Crore.
A credit rating downgrade can impact the company's borrowing costs, access to credit, and investor confidence, potentially affecting future financing and business operations.
The credit rating for Neogen Chemicals Limited and its subsidiary has been downgraded by CRISIL, indicating a negative outlook on their financial health and project execution capabilities.
Neogen Chemicals Limited (the Company) and its wholly owned subsidiary, Neogen Ionics Limited, have had their credit ratings reviewed by CRISIL Ratings Limited. The rating action for Neogen Chemicals Limited resulted in a downgrade of its long-term rating from CRISIL A/Negative to CRISIL A-/Negative, and its short-term rating from CRISIL A1 to CRISIL A2+.
This downgrade is attributed to a delay in the battery chemicals project and the delayed receipt of an insurance claim. The rating revision for Neogen Ionics Limited reflects similar rating actions on its parent company. Specifically, Neogen Chemicals Limited's total bank loan facilities rated at ₹680 Crore have been affected. Its Non-Convertible Debentures of ₹200 Crore also saw a rating revision from CRISIL A/Negative to CRISIL A-/Negative.
Neogen Ionics Limited's long-term rating was revised from CRISIL A-/Negative to CRISIL BBB+/Negative, and its working capital facilities were also impacted. CRISIL has provided detailed ratings for various bank facilities and instruments for both Neogen Chemicals Limited and Neogen Ionics Limited, including those with Axis Bank, IDBI Bank, State Bank of India, HDFC Bank, Bandhan Bank, HDFC Bank, and The Karur Vysya Bank Limited.
The company has made this information available on its website at https://neogenchem.com/announcements/.
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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.