Rating woes for McLeod Russel

The ICRA revised the long-term rating of McLeod Russels, part of the B M Khaitan group companies, from "A" to "BBB-" for Rs 1031 crore line of credit.

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Ind-Ra estimated Eveready Industries to reduce debt by Rs 130-140 crore in FY'20 to an acceptable level
Kolkata: After Eveready Industries India Ltd downgrade, a rating agency on Tuesday downgraded the rating of bulk tea major McLeod Russels India with a negative outlook.

The ICRA revised the long-term rating of McLeod Russels, part of the B M Khaitan group companies, from "A" to "BBB-" for Rs 1031 crore line of credit.

The short-term rating of the company has also been revised from "A2+" to "A3" with negative outlook on the long- term rating, the company informed the bourses.


Days before, another rating agency India Rating had downgraded the long-term credit rating for dry cell battery- maker Eveready with a negative outlook.
McLeod closed at Rs 37.85 losing 9 per cent while Eveready closed at Rs 100.70 at BSE.

Ind-Ra estimated Eveready Industries to reduce debt by Rs 130-140 crore in FY'20 to an acceptable level, which can only be achieved by the sale of its Hyderabad assets or full repayment of inter corporate deposits.

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McLeod recently hived off several tea assets while, Eveready was negotiating for a strategic investor or sale to reduce group level debt to sustainable level.

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