Paul Merchants Limited Credit Rating Downgraded and Withdrawn by Infomerics
Paul Merchants Limited disclosed to BSE on February 20, 2026, that Infomerics Valuation and Rating Limited downgraded and withdrew its credit ratings. The downgrade was attributed to declining forex revenue, thin profitability margins from trading operations, and exposure to U.S. and Canadian market risks. The ratings were withdrawn at the company's request after obtaining necessary lender clearances, with Infomerics maintaining a stable outlook citing experienced promoters and comfortable capital structure.
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Paul Merchants Limited has informed BSE about the downgrade and withdrawal of its credit ratings by Infomerics Valuation and Rating Limited on February 20, 2026. The company provided detailed reasons for the rating action following an earlier communication that lacked specific justification for the downgrade.
Rating Downgrade Details
Infomerics Valuation and Rating Limited downgraded Paul Merchants' credit rating before simultaneously withdrawing it with immediate effect. The rating agency provided comprehensive reasoning for the downgrade through a press release dated February 20, 2026.
| Parameter: | Details |
|---|---|
| Event Date: | February 20, 2026 |
| Time of Occurrence: | 1.08 PM |
| Rating Agency: | Infomerics Valuation and Rating Limited |
| Action Taken: | Downgrade and Withdrawal |
| BSE Scrip Code: | 539113 |
Reasons for Rating Downgrade
The credit rating agency identified several key factors that led to the downgrade:
- Declining forex revenue affecting overall financial performance
- Thin profitability margins inherent to the company's trading nature of operations
- Market exposure risks specifically related to U.S. and Canadian markets
Despite these concerns, Infomerics acknowledged certain positive aspects that continued to support the rating before withdrawal.
Supporting Factors and Outlook
The rating agency recognized several strengths that provided partial support to the credit assessment:
| Positive Factors: | Description |
|---|---|
| Management Experience: | Promoters' extensive experience in the business |
| Track Record: | Established operational track record |
| Capital Structure: | Comfortable capital structure |
| Outlook: | Stable outlook assigned |
Rating Withdrawal Process
The withdrawal of ratings occurred following a formal request from Paul Merchants Limited. The company obtained necessary clearances from its lenders to facilitate the withdrawal process.
Withdrawal Requirements Met:
- No objection certificate received from respective lenders
- No dues certificate obtained for sanctioned facilities
- Confirmation that proposed bank facilities would not be pursued
The rating withdrawal was conducted in accordance with Infomerics Ratings policy on withdrawal of ratings. Additionally, ratings assigned to proposed bank facilities were also withdrawn based on the company's confirmation that it would not proceed with raising the envisaged loans.
Regulatory Compliance
Paul Merchants Limited filed this intimation under Regulation 30 of SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015. The communication was signed by Company Secretary and Compliance Officer Hardam Singh (FCS 5046) and submitted to BSE Limited with reference number PML/CS/BSE/2026/254.
This disclosure follows the company's earlier letter PML/CS/BSE/2026/253 dated February 20, 2026, which initially informed about the rating withdrawal but lacked specific reasons for the downgrade.
Historical Stock Returns for Paul Merchants
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -0.49% | -9.65% | -7.12% | -29.60% | -34.47% | -58.23% |
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