Bombay Burmah Trading Corporation (BBTCL) has announced the assignment and affirmation of credit ratings from Crisil and India Ratings. Crisil assigned a long-term rating of Crisil AA-/Stable and a short-term rating of Crisil A1+ for bank loan facilities. India Ratings affirmed the IND AA-/Stable/IND A1+ rating for existing bank loan facilities and IND A1+ for commercial paper, while also assigning an IND A1+ rating to proposed commercial paper.
Credit Rating Highlights
Crisil Ratings Limited has assigned the following ratings to Bombay Burmah Trading Corporation’s (BBTCL) facilities:
- Long Term Rating: Crisil AA-/Stable
- Short Term Rating: Crisil A1+
These ratings apply to BBTCL’s bank loan facilities, with a total amount of INR 117.00 crore.
India Ratings Actions
India Ratings & Research has taken the following actions:
- Affirmed the IND AA-/Stable/IND A1+ rating for bank loan facilities amounting to INR 117.00 crore (reduced from INR 142.50 crore).
- Affirmed the IND A1+ rating for commercial paper of INR 150.00 crore.
- Assigned an IND A1+ rating to proposed commercial paper of INR 50.00 crore.
It is noted that INR 30.00 crore of the commercial paper is yet to be issued.
Rating Drivers and Rationale (India Ratings)
India Ratings continues to take a consolidated view of BBTCL and its subsidiaries. Key factors influencing the ratings are:
- High financial flexibility due to the strong subsidiary, Britannia Industries Limited (BIL).
- Consistent dividend and interest income supporting cash flows.
- Sustained improvement in consolidated credit metrics expected to remain healthy in the medium term.
BBTCL is expected to achieve a net cash position by FYE27 at the consolidated level.
Liquidity Analysis (India Ratings)
BBTCL’s liquidity is considered adequate, benefiting from dividends from BIL and satisfactory relationships with its banks. At the standalone level, the company had cash and equivalents of INR 267.3 million in FY25. The company also has unencumbered liquid investments and bank deposits. The management intends to evaluate further monetization of non-core land parcels to enhance the credit profile from FY26 onward.
Source: BSE
