ICRA Ltd assigns ratings to National Fertilisers Limited

New Delhi: State-owned National Fertilisers Limited (NFL) said in a regulatory filing that ICRA Limited has assigned credit ratings to the company for various debt instruments. Further, the filing noted that the rating agency has assigned '[ ICRA] AA (Stable)' for long-term fund-based limits worth Rs 9,000 crores. It also stated that the rating has been upgraded from '[ICRA] AA-(Stable)'.

The filing also informed that ICRA has assigned '[ ICRA] AA (Stable)' for term loans worth Rs 1,044 crores, which has been upgraded from '[ICRA] AA- (Stable)'. The rating agency reaffirmed the credit rating for short-term non-fund-based facilities worth Rs 9,600 crores and rated it '[ICRA] A1+'. The agency also reaffirmed rating for commercial paper worth Rs 4,000 crores and rated it '[ ICRA] A1+'.

Analysis of ratings

"The Stable outlook on the long-term rating reflects ICRA’s opinion that the company will continue to benefit from its leadership position in the fertiliser sector and its strategic importance to the central government and will generate healthy cash flows from operations, driven by improvement in energy consumption and a higher share of the industrial chemicals segment," said the rating agency.

"The liquidity position of the company remains adequate, given the availability of large working capital borrowing limits and adequate drawing power coupled with the large sovereign ownership which yields significant financial flexibility. The timely inflow of subsidy to a large extent from the central government over the last few quarters and expectations of the same continuing will support the liquidity position of the company," said ICRA.

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