Bengaluru, January 28, 2025 – KIOCL Limited (NSE: KIOCL) has announced that Brickwork Ratings India Pvt. Ltd. has downgraded the company’s credit ratings for its fund-based and non-fund-based bank loan facilities totaling ₹1,608 crore. The downgrade reflects performance-related concerns identified by the rating agency.
Revised Credit Ratings
Facility Type
Amount (₹ Crore)
Previous Rating
Revised Rating
Remarks
Fund-Based (Term Loan)
558
BWR A+/Negative (Reaffirmed)
BWR A/Negative
Downgraded
Fund-Based (Cash Credit/Overdraft)
(15)
BWR A+/Negative (Reaffirmed)
BWR A/Negative
Downgraded
Non-Fund-Based (Letter of Credit/Bank Guarantee/Derivative Limits)
1,050
BWR A1+ (Reaffirmed)
BWR A2+
Downgraded
Reasons for Downgrade
The downgrade reflects concerns over KIOCL’s financial performance and operational challenges. While the company did not provide specific details on the factors leading to the downgrade, rating downgrades generally indicate weaker creditworthiness and higher perceived risk for lenders.
Company Statement
KIOCL clarified that the revised ratings were issued on September 23, 2024. Still, this latest disclosure prompted the National Stock Exchange of India (NSE) to request clarification on January 27, 2025.
Market Implications
This downgrade may impact KIOCL’s borrowing cost and investor sentiment, as lower credit ratings typically lead to higher interest rates on future loans. Investors will closely watch KIOCL’s following financial performance report and strategic measures to address the rating concerns.
