ICRA retains LAA- ratings for DFPCL's Non Conv Deb programme

New Delhi, Apr 27 (UNI) Credit rating agency ICRA has retained the ratings assigned to the debt instruments of Deepak Fertilizers and Petrochemicals Corporation Ltd.

ICRA retained the LAA- and A1+ ratings assigned to the Rs 380 million Non-Convertible Debenture programme and Rs 400 million Commercial Paper programme respectively, of Deepak Fertilizers and Petrochemicals Corporation Ltd (DFPCL).

The LAA- rating indicates high credit quality in the long term, and the A1+ rating indicates highest credit quality in the short term.

These ratings continue to reflect DFPCL's favourable market position in its industrial chemicals business comprising mainly of Methanol, Nitric Acids and Low Density Ammonium Nitrate (LDAN), the growth potential in these businesses and also the current comfortable financial position of the company, characterised by good profitability and low levels of leverage.

ICRA also took into account the company's diversified product portfolio, which imparts it significant operating flexibility to adapt to changing market conditions.

These strengths are however tempered by its exposure to commodity price cycles, more pronounced in methanol, shortages in natural gas availability as well as the likely revision in natural gas regulation and pricing.

The rating also took into consideration the risks associated with the ongoing and proposed projects in chemical businesses and investments such as the shopping mall.

UNI MP ARB BST1747