CARE Ratings downgrades various bank facilities of Jain Irrigation

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Mumbai | Published: October 12, 2019 12:19:43 AM

Data from Bloomberg showed total debt of the company stood at Rs 4,856 crore as on March 2019.

The stock of Jain irrigation ended the day at Rs 14.60, up 3.55%, on the BSE

CARE Ratings on Thursday downgraded long-term bank facilities (term loan), long-term bank facilities – working capital and short-term bank facilities of Jain Irrigation Systems (JISL) amounting to Rs 4,653.20 crore to ‘CARE D’.

The rating agency in its rationale said as per the management, delays in debt servicing is on account of slowdown in collection of receivables, leading to cash flow issues in the company.

The stock of Jain irrigation ended the day at Rs 14.60, up 3.55%, on the BSE. Data from Bloomberg showed total debt of the company stood at Rs 4,856 crore as on March 2019.

“The lenders of JISL have also signed an inter-creditor agreement due to the ongoing stress in the account. CARE also notes that JISL is in discussion with banks for increase in working capital limits to address their immediate liquidity concerns which are yet to be sanctioned by banks,” said CARE Ratings in its press release.

CARE Ratings downgraded long term bank facilities —term loan and long-term bank facilities — working capital from CARE B+ Stable to CARE D. Short-term bank facilities were downgraded from CARE A4 to CARE D.

Established in 1986, JISL operates in diverse segments of the agri business and also offers products in renewable energy segment.

The micro irrigation system (drip and sprinkler) is the flagship product of the company wherein JISL offers end-to-end water solution projects.

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