Banco Products (India) Limited has issued a clarification regarding the migration of its bank facility credit rating to “CRISIL BB+/Stable; Issuer Not Cooperating.” The company confirms this change is purely procedural due to the cessation of surveillance with CRISIL after appointing CARE Ratings Limited. Banco Products affirms that no default has occurred in debt servicing, and all obligations are being met timely, ensuring continued financial discipline and transparency.
Regulatory Disclosure on Credit Rating Update
Banco Products (India) Limited has formally informed the stock exchanges regarding a recent rating action concerning its existing bank facilities. The former credit rating agency, CRISIL Ratings Limited, published an update migrating the cash credit facilities rating to the classification of “CRISIL BB+/Stable; Issuer Not Cooperating.”
Appointment of New Rating Agency
The Company has clarified that it has formally appointed CARE Ratings Limited as the current credit rating agency for its bank facilities. CARE Ratings has assigned the facilities a rating of “CARE AA, Stable / CARE A1+,” which is noted as being consistent with the prior rating issued by CRISIL Ratings Limited.
Nature of ‘Issuer Not Cooperating’ Status
The management emphasized that the classification of “Issuer Not Cooperating” issued by CRISIL is strictly procedural. This status arose solely because Banco Products did not continue the surveillance process with CRISIL following the appointment of CARE Ratings. Crucially, the Company states clearly that this change does not arise from any delay or default in servicing its debt obligations.
Confirmation of Debt Servicing Compliance
Banco Products provides assurance to its stakeholders that there has been no default in the repayment of principal or interest on any of its debt facilities. All debt servicing obligations continue to be met in a timely manner. The Company reaffirms its commitment to maintaining high standards of financial discipline, transparency, and regulatory compliance, submitting this clarification in the interest of good governance.
Source: BSE
