CARE revises ratings of DSCL’s bank facilities

Credit rating agency, Credit Analysis & Research (CARE) has revised rating of Dharani Sugars and Chemicals’ (DSCL) long term bank facilities worth Rs 415.67 crore to ‘BB+’ from ‘BBB-’. The rating agency has also revised rating of company’s short term bank facilities worth Rs 208 crore to ‘A4+’ from ‘A3’. The revision in the ratings assigned to the bank facilities of DSCL take into account the pressure on the profitability of DSCL caused by stressed sugar prices, increase in cost and consequent deterioration on the financial risk profile of the company on account of losses during 9MFY14 & increase in borrowings. Dharani Sugars and Chemicals (DSCL) is engaged in the manufacture of sugar, industrial alcohol and co-generation of power. DSCL has three sugar mills located across Tamil Nadu. These units are located in Dharani Nagar (Tirunelveli Dist.), Sankarapuram (Vilupuram Dist.) and Polur (Thiruvannamalai Dist.).