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CREDIT ALERT
March 26, 2020 | Mumbai
Rating actions spike as Covid-19 impacts consumer and travel- related sectors
A credit alert is CRISIL’s opinion on a sharp and specific development. It conveys that CRISIL will revert shortly on the impact of the development on the ratings of those affected.
The rise in Covid-19 cases and the 21-day lockdown announced by the government would cause large-scale
disruption to businesses. Earlier on March 13, 2020, CRISIL had said in a credit alert that credit pressure on India Inc was intensifying.
CRISIL has reviewed 120 corporates most-affected by the situation, belonging to sectors such as airlines, hotels, tourism, malls, organised brick & mortar retail, multiplexes, and restaurants.
CRISIL has taken a rating action on 81 companies out of these, while ratings on the remaining 39 have been retained at existing levels. The actions are largely driven by near-term challenges to liquidity, which could impact financial flexibility. A summation of the rating actions are given below:
Rating action Count
Downward revision in Rating Outlook (incl. Stable from
Positive; Negative from Stable) 40
Downgrade 22
Watch Negative (incl. Developing) 19
Total 81
These are largely small and mid-sized companies, and some large ones with leveraged balance sheets that are more vulnerable to a sharp slump in cash flows. CRISIL will continue to engage with these clients over near to medium term.
On the other hand, we foresee 39 companies (see annexure) surmounting the stress because of balance sheet liquidity, unutilised bank lines, and other external financial flexibilities. These companies are not expected to face liquidity issues when it comes to operating expenses and debt repayments in the near term.
Recently, a few public sector banks have started offering loans for credits classified as ‘standard’ with a moratorium on repayment and concessional interest rates to tide over cash flow mismatches arising out of current lockdown on businesses. These can offset liquidity constraints to some extent, but revenue-related challenges will continue in the near term.
CRISIL will monitor the companies for developments that could impact their businesses in the longer run. CRISIL is also looking at other sectors where companies have announced shutdowns to comply with the government directive, and may announce further rating actions shortly.
Annexure
List of 39 companies where ratings are unaffected for now:
Name of the company Rated amount
(Rs crore) Rating
1 Aspire Systems India Pvt Ltd 15 CRISIL A2
2 Baazar Retail Ltd 40.3 CRISIL A/Stable/CRISIL A1
3 Chalimeda Feeds Pvt Ltd 71.7 CRISIL A-/Stable
4 Cyient Ltd 90 CRISIL A1+
5 Dayal Fertilizers Pvt Ltd 23 CRISIL BBB+/Stable/CRISIL A2
6 Dayal Industries Pvt Ltd 24 CRISIL BBB+/Stable
7 Desert Adventures Tourism LLC 93 CRISIL A1+(CE)
8 Enes Textile Mills 75 CRISIL A+/Stable
9 ESDS Software Solution Pvt Ltd 70 CRISIL BBB+/Stable/CRISIL A2
10 Geo Seafoods 39 CRISIL BBB-/Stable/CRISIL A3
11 HCL Technologies Ltd - CCR AAA/Stable
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12 Jehan Numa Palace Hotel Pvt Ltd 10 CRISIL BBB+/Stable/CRISIL A2
13 KSE Ltd 73* CRISIL A-/FA/Stable
14 Maveric Systems Ltd 42 CRISIL BBB-/Stable/CRISIL A3
15 Metro Retail Pvt Ltd 34 CRISIL A-/Stable
16 Mohan Fibre Products Ltd 17 CRISIL BBB+/Stable/CRISIL A2
17 Namdhari Agro Fresh Pvt Ltd 8 CRISIL BBB/Negative/CRISIL A2
18 Noveltech Feeds Pvt Ltd 250 CRISIL A/Stable
19 Nutrikraft India Pvt Ltd 100 CRISIL A-/Stable/CRISIL A2+
20 Panchshil Infrastructure Holdings Pvt Ltd 742 CRISIL BBB/Stable/CRISIL A3
21 P-One Infrastructure Pvt Ltd 550 CRISIL BBB+/Stable
22 Progressive Infotech Pvt Ltd 3.4 CRISIL BBB-/Stable
23 QualityKiosk Technologies Pvt Ltd 33 CRISIL BBB/Stable
24 Quest Retail Pvt Ltd 35 CRISIL A/Stable/CRISIL A1
25 Ratnadeep Super Market Pvt Ltd 30 CRISIL BBB+/Stable
26 Regent Resorts and Properties Pvt Ltd 25.25 CRISIL BBB-/Stable/CRISIL A3
27 Savera Industries Ltd 14.25 CRISIL BBB/Stable/CRISIL A3+
28 Sonata Software Ltd 50 CRISIL A+/Positive
29 StockHolding Document Management Services Ltd 8 CRISIL BBB/Negative/CRISIL A3+
30 Synthite Industries Pvt Ltd 818 CRISIL AA-/Positive/CRISIL A1+
31 TCNS Clothing Co Ltd 75 CRISIL A+/Stable/CRISIL A1+
32 Transline Air Cargo Services Pvt Ltd 22 CRISIL BBB/Stable
33 Unicorn Infosolutions Pvt Ltd 70 CRISIL BBB-/Stable/CRISIL A3
34 Value Point Systems Pvt Ltd 74.25 CRISIL BBB/Stable/CRISIL A3+
35 Vedant Fashions Pvt Ltd 130^ CRISIL AA-/Stable/CRISIL A1+
36 Vimala Feeds Pvt Ltd 28.25 CRISIL A-/Stable
37 Piem Hotels Ltd 50 CRISIL A1+
38 Silver Sea Foods 40 CRISIL A2
39 Shoppers Stop Ltd 100# CRISIL A1+
*Includes Rs 10 crore of rated fixed deposits
^Includes Rs 10 crore of rated commercial paper
#Entirely comprising rated commercial paper
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Subodh Rai
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Manish Gupta
Senior Director - CRISIL Ratings CRISIL Limited
B: +91 124 672 2000 [email protected] Anuj Sethi
Senior Director - CRISIL Ratings CRISIL Limited
B:+91 44 6656 3100 [email protected] Sachin Gupta
Senior Director - CRISIL Ratings CRISIL Limited
B: +91 22 3342 3023 [email protected] Mohit Makhija
Director - CRISIL Ratings CRISIL Limited
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3 About CRISIL Limited
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