Care Ratings downgrades Jain Irrigation Systems bank facilities to single D

Mumbai (Maharashtra) [India], Oct 12 (ANI): Jain Irrigation Systems said on Saturday that Care Ratings has downgraded its rating on bank facilities due to on-going delays in debt servicing.
The billion-dollar enterprise has long-term loans of Rs 783 crore, long-term bank facilities for working capital of Rs 1,650 crore and short-term bank facilities of Rs 2,220 crore -- with total facilities aggregating to Rs 4,653 crore, according to regulatory filings at stock exchanges.
Care downgraded its long-term loans and long-term bank facilities for working capital from B plus with stable outlook to single D. At the same time, it downgraded the company's short-term bank facilities from A4 to single D.
"The delay in debt servicing is on account of slowdown in collection of receivables leading to cash flow issues in the company," said Care in its detailed rationale. "Further, the company has signed an inter-creditor agreement due to ongoing stress in the account."
Care also noted that Jain Irrigation Systems is in discussion with banks for an increase in working capital limits to address immediate liquidity concerns which are yet to be sanctioned.
In June, India Ratings and Research (Ind-Ra) had downgraded the company's long-term issuer rating to BBB from A minus while placing it on rating watch negative, reflecting deterioration in the company's liquidity profile on account of a delay in realisation of its receivables from micro-irrigation systems segment.
Jain Irrigation Systems reported a profit after tax of Rs 254 crore on operating income of Rs 8,826 crore during 2018-19. It operates in diverse segments of the agri-business and also offers products in renewable energy segment.
The company has 33 manufacturing bases with 11 manufacturing facilities and 5 demo and research development farms in India besides 17 plants located across four continents.
(ANI)