The ratings for long-term bank facilities for Arvind Fashion was reaffirmed CARE A- with outlook revised from stable to negative.
CARE Ratings on Thursday revised the outlook of bank facilities of Arvind Fashions from stable to negative. The revision in the outlook on the long-term rating of Arvind Fashion’s reflects the rating agency’s expectation of adverse impact on the credit profile of the company due to the temporary closure of its retail outlets on account of the outbreak of Covid-19. Data from Bloomberg showed that total debt of Arvind Fashion stood at `2,256 crore as on September 2019.
The ratings for long-term bank facilities for Arvind Fashion was reaffirmed CARE A- with outlook revised from stable to negative and for short- term bank facilities rating was reaffirmed at CARE A2+. The ratings for Arvind Fashions continue to remain constrained on account of deterioration in debt coverage and leverage indicators arising from net loss of `191 crore incurred by it on a consolidated level during 9MFY20 which also remained higher than previously envisaged, according to CARE Ratings.
In another release, CARE Ratings also revised outlook from stable to negative for NCDs of Edelweiss Financial Services and reaffirmed the ratings at CARE AA-. The rating for commercial papers was reaffirmed at CARE A1+. According to the rating agency, the outlook has been revised to negative from stable on account of the heightened risk profile of the overall credit book of Edelweiss Financial Services due to the current outbreak of Covid-19.