NewsCorporate ActionsPrimo Chemicals' Credit Ratings Reaffirmed by CARE, Outlook Revised to StablePrimo Chemicals' Credit Ratings Reaffirmed by CARE, Outlook Revised to Stable
CARE Ratings has reaffirmed Primo Chemicals Limited's (PCL) credit ratings while upgrading its outlook from negative to stable. The long-term bank facilities rating of CARE BBB- was reaffirmed for Rs. 102.71 crore, reduced from Rs. 133.27 crore. The long-term/short-term bank facilities rating of CARE BBB-/CARE A3 was maintained for Rs. 75.00 crore. This improved outlook suggests enhanced financial stability and may lead to better credibility, borrowing terms, and investor confidence for PCL.
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Primo Chemicals Limited (PCL) has received a vote of confidence from CARE Ratings Limited, as the credit rating agency reaffirmed the company's ratings while upgrading its outlook from negative to stable. This development signals a potential improvement in the company's financial stability and credit profile.
Rating Details
CARE Ratings has reviewed and reaffirmed the following ratings for Primo Chemicals' bank facilities:
| Facility Type | Amount (Rs. Crore) | Rating | Outlook |
|---|---|---|---|
| Long Term Bank Facilities | 102.71 | CARE BBB- | Stable |
| Long Term/Short Term Bank Facilities | 75.00 | CARE BBB-/CARE A3 | Stable |
It's worth noting that the amount for long-term bank facilities has been reduced from Rs. 133.27 crore to Rs. 102.71 crore, potentially indicating a reduction in the company's long-term debt exposure.
Outlook Revision
The most significant aspect of this rating action is the revision of the outlook from negative to stable across all rated facilities. This change suggests that CARE Ratings perceives an improvement in Primo Chemicals' financial health and business prospects.
Implications
The reaffirmation of ratings, coupled with the improved outlook, may have several positive implications for Primo Chemicals:
- Enhanced Credibility: The stable outlook could boost the company's credibility among investors, lenders, and other stakeholders.
- Potential for Better Borrowing Terms: An improved credit profile might lead to more favorable borrowing terms in the future.
- Investor Confidence: The rating action could positively influence investor sentiment towards the company.
Disclosure and Compliance
In compliance with SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, Primo Chemicals promptly disclosed this information to the stock exchanges. The company received the rating update from CARE Ratings Limited via email on July 23, 2025, at 16:48 hours.
Primo Chemicals has also made this information available on its official website ( www.primochemicals.in ), ensuring transparency and easy access for all stakeholders.
As the chemical sector continues to evolve, Primo Chemicals' improved credit outlook may position the company to capitalize on growth opportunities while maintaining financial prudence. Investors and market watchers will likely keep a close eye on the company's performance in the coming quarters to see if this positive outlook translates into tangible financial improvements.
Historical Stock Returns for Primo Chemicals
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +1.71% | +1.40% | -2.24% | -6.44% | -6.44% | -6.44% |
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