August 24, 2012
Mumbai
Camlin Fine Chemicals Limited
Ratings suspended
| Total Bank Loan Facilities Rated | Rs. 1430 Million |
| Long-Term Rating | Suspended |
| Short-Term Rating | Suspended |
(Refer to Annexure 1 for Facility-wise details)
CRISIL has suspended its rating on the bank facilities of Camlin Fine Chemicals Limited (CFCL). The suspension of ratings is on account of non-cooperation by CFCL with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, CFCL is yet to provide adequate information to enable CRISIL to assess CFCL’s ability to service its debt. The suspension reflects CRISIL's inability to maintain a valid rating in the absence of adequate information. CRISIL views information availability risk as a key credit factor in its rating process and views non-sharing of information as a first signal of possible credit distress, as outlined in its criteria “Information availability risk in Credit ratings".
About the Group
The CFCL group, carved out of Camlin Ltd in July 2006, is engaged in the manufacture and distribution of specialty chemicals and intermediates, food additives, food supplements, and antioxidants. Fine chemicals are synthesised products, used as intermediates in the manufacture of various end products. CFCL exports around 90 per cent of its key products, TBHQ and BHA.
CRISIL has combined the business and financial risk profiles of CFCL and its group companies, Sangam Laboratories Ltd, Chemolutions Chemicals Ltd, Dulcette Technologies LLC, Fine Lifestyle Brands Ltd, Fine Lifestyle Solutions Ltd, and Fine Renewable Energy Ltd. This is because all these entities, together referred as the CFCL group, derive significant business and operational synergies from each other, and have fungible cash flows.
Annexure 1 - Details of various bank facilities
| Current facilities | Previous facilities | ||||
| Facility | Amount (Rs. Million) | Rating | Facility | Amount (Rs. Million) | Rating |
| Bank Guarantee | 80 | Suspended | Bank Guarantee# | 80 | CRISIL A2 |
| Cash Credit | 220 | Suspended | Cash Credit | 220 | CRISIL BBB+/Negative |
| Foreign Bill Purchase | 360 | Suspended | Foreign Bill Purchase | 360 | CRISIL A2 |
| Letter of Credit | 400 | Suspended | Letter of Credit | 400 | CRISIL A2 |
| Long-Term Loan | 160.4 | Suspended | Long-Term Loan* | 370.0 | CRISIL BBB+/Negative |
| Proposed Long-Term Bank Loan Facility | 209.6 | Suspended | -- | 0 | -- |
| Total | 1430 | -- | Total | 1430 | -- |
* Includes proposed limit of Rs. 209.6 Million.
# Bank guarantee limits can be changed to letter of credit limits, but not vice versa.
| Media Contacts | Analytical Contacts | CRISIL Rating Desk |
| Mitu Samar Director, Communications and Brand Management CRISIL Limited Tel: +91-22- 3342 1838 E-mail: mitu.samar@crisil.com Tanuja Abhinandan Communications and Brand Management CRISIL Limited Tel: +91-22- 3342 1818 Email: tanuja.abhinandan@crisil.com | Subodh K Rai Senior Director - CRISIL Ratings Tel: +91-0124-672 2000 Email: subodh.rai@crisil.com | Tel: +91-22-3342 3047/3342 3064 Email:CRISILratingdesk@crisil.com |
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August 24, 2012 | http://www.crisil.com |