CARE revises rating outlook of Blue Star Limited to Negative

CARE Ratings Limited have reviewed the credit ratings assigned to Blue Star Limited's long term and short term credit facilities. Kindly note that while the credit rating has been reaffirmed at AA+, the rating outlook has been revised from Stable to Negative due to temporary shutdown of manufacturing facilities, and expected lower demand of consumer durables in the near to medium term as a consequence of the lockdown imposed due to COVID-19 pandemic. The outlook may be revised to 'Stable' in case of faster than anticipated recovery in demand resulting in sustained improvement in the Company's business and financial risk profile.

Details of revision in ratings of the Company's borrowing facilities from its bankers are as below:

Long-term Bank Facilities (Fund-based) - CARE AA+; Negative (Double A Plus; Outlook: Negative) - Rating Reaffirmed but outlook revised from 'Stable'

Long-term/Short-term Bank Facilities (Fundbased / Non-Fund based) - CARE AA+; Negative / CARE A1+ (Double A Plus; Outlook: Negative/A One Plus) - Rating Reaffirmed but outlook revised from 'Stable'

The rating for Commercial Papers and Short-term Bank Facilities (Non-fund based) have been reaffirmed as CARE A1+ (A One Plus).

Further, the proposed Non-Convertible Debentures of the Company have been assigned a rating of Provisional CARE AA+; Negative (Double A Plus; Outlook: Negative).

Shares of BLUE STAR LTD. was last trading in BSE at Rs.467 as compared to the previous close of Rs. 460.85. The total number of shares traded during the day was 1574 in over 235 trades.

The stock hit an intraday high of Rs. 469.5 and intraday low of 461.15. The net turnover during the day was Rs. 731495.

Source : Equity Bulls

Keywords