VIP Industries Limited announced a revision in the credit rating assigned to its bank facilities by Crisil Ratings Limited. The Long Term Rating was downgraded from ‘Crisil A+/Negative’ to ‘Crisil A/Negative’. Similarly, the Short Term Rating saw a reduction from ‘Crisil A1’ to ‘Crisil A2+’. This revision stems from the recent assessment of the company’s financial performance, totaling Rs. 464 crore in rated facilities.
Credit Rating Revision Announced
VIP Industries Limited has officially informed the stock exchanges regarding a change in the credit ratings assigned to its outstanding bank facilities by Crisil Ratings Limited. The revision, effective as of March 09, 2026, reflects changes assessed based on the company’s recent financial performance.
Summary of Rating Actions
The total quantum of bank loan facilities rated under review amounts to Rs. 464 crore. The key rating actions are detailed as follows:
- Long Term Rating: Downgraded from ‘Crisil A+/Negative’ to ‘Crisil A/Negative’.
- Short Term Rating: Downgraded from ‘Crisil A1’ to ‘Crisil A2+’.
Bank Facility Breakdown (Rs. 464 Crore)
The underlying facilities rated include a mix of Cash Credit, Short Term Bank Facilities, and Working Capital Demand Loans across various scheduled banks. Notable components include:
- Cash Credit Facilities (Totaling Rs. 80.6 Crore): Rated Crisil A/Negative across four different banks.
- Short Term Bank Facilities (Totaling Rs. 223.4 Crore): Rated Crisil A2+ across four institutions.
- Working Capital Demand Loans (Totaling Rs. 150 Crore): Rated Crisil A2+ across three banks.
The annexure further detailed complex interchangeability clauses related to these facilities, including provisions for Letter of Credit, Export Credit, and Bank Guarantee sub-limits.
Next Steps
The company acknowledged receipt of the detailed letter from Crisil Ratings and requested that stakeholders take note of this information. Crisil Ratings confirmed that the ratings will remain under continuous surveillance and may be revised again if circumstances warrant, maintaining the review process as per their standard policy.
Source: BSE
