ICRA updates on rating of The Indian Hotels Company Ltd

ICRA Limited has revised (i.e. upgraded) the long-term credit rating of the below Non-Convertible Debentures (NCDs). However, since these NCDs have already been repaid on their maturity, ICRA Limited has withdrawn the rating on the same as there is no amount outstanding against these NCDs.

The rating agency has assigned a fresh rating of AA+(Stable) for a bank overdraft facility / WCDL of Rs. 15 crores.

The upgrade in the rating factors are based on the improvement in the capitalisation metrics and cash flow position of The Indian Hotels Company Limited (IHCL / the company), following the fund raising in FY2022, and significant improvement in operating metrics in Ql FY2023. IHCL raised equity of Rs. 3,982.0 crore in FY2022 via rights issue and qualified institutional placement (QIP), the proceeds of which were primarily utilised for debt reduction.

Source : Equity Bulls

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