The Telegraph
Since 1st March, 1999
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Crisil rating pat for IPCL

Mumbai, Jan. 22: The Credit Rating and Information Services of India Ltd (Crisil) has upgraded the debt instruments of Indian Petrochemicals Corporation Ltd (IPCL) on the basis of strong business and financial support from its new parent, Reliance Industries Ltd (RIL).

While IPCL’s 1403 crore non-convertible debenture issue has been upgraded to AA from AA-, the rating agency also upgraded the company’s fixed deposit programme to FAA+ from FAA.

Crisil said that its ratings continue to factor in IPCL’s position in the domestic polymer market and its geographically diversified and integrated operations. However, these strengths are offset by a weak financial position which is inconsistent with its current rating category, its susceptibility to movements in international prices of polymers, a potential increase in the prices of natural gas and IPCL’s high fixed cost structure.

“IPCL’s financial profile is likely to improve in the medium term with the use of accruals towards debt repayment, as it has no large capital expenditure plans on the anvil,” Crisil added.

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