Brickwork Ratings downgrades the ratings and migrates the same under the ISSUER NOT COOPERATING* category for the Bank Loan Facilities of Rs. 40.00 Crs. of Future Speciality Retail Limited based on the best available information, as the issuer did not cooperate.
ParticularsFacilities** | Amount (Rs.Crs.) | Tenure | Rating# | ||
---|---|---|---|---|---|
Previous | Present | Previous (14 Mar 2022) |
Present | ||
Fund Based | 40.00 | 40.00 | Long Term |
BWR B-/Stable
Downgrade |
BWR D
ISSUER NOT COOPERATING* /Downgrade |
Grand Total | 40.00 | 40.00 | (Rupees Forty Crores Only) |
Brickwork Ratings has downgraded the rating of Future Speciality Retail Limited to BWR D and migrated the rating under the ISSUER NOT COOPERATING* category.
Reasons for Downgrade: The Future group is in stress and majority of the companies under the group are under NCLT. BWR is not updated with the current status of its operations/financials and the lender has not provided any confirmation with respect to the account status. Also, the company has stopped submitting NDS for more than 3 months. Hence, BWR is of the opinion that taking into account the stressed position of the group and the unavailability of information regarding the loan status of this entity, there is a likelihood of imminent default of its debt obligations. BWR D indicates the ratings are in default or are expected to be in default soon
Reason for non- cooperation: BWR followed up with the company via email dated 14th Nov 2022, 15th Nov 2022, 6th Dec 2022, and 17th Jan 2023 for providing information with regads to the surveillance of rating. However, the company has not provided all the required information to execute the annual review. The company did not cooperate with a review of the rating for the bank loan facilities of Rs.40.00 Crs. The company has not provided any information wrt business, management, and operation for its review. Hence, the rating has been migrated to ISSUER NOT COOPERATING category.
LIMITATIONS OF THE RATING
Information availability risk is a key factor in the assessment of credit risk and non-cooperation by the firm to provide the required information for a review of the assigned rating may also be accompanied by financial stress.
ABOUT THE ENTITYFuture Specialty Retail Limited (FSRL) is a 100% subsidiary of Future Trends Limited (part of Future Group, 100% subsidiary of Future Lifestyle Fashion Limited) was incorporated in 2017 by carving out of Lee Cooper Apparel business from Future Lifestyle Fashion Limited. FSRL had the exclusive license from Iconix International for the Lee Cooper Apparel brand clothing for India Territory. The company gets the apparels manufactured from vendors (Job work basis) and sells the same via different channels.
FSRL had an agreement to sell the Men’s, Women’s and Kids segment of the Lee Cooper Apparel. Later, FSRL had signed the Lee Cooper Footwear license for the India Territory in Sep 2018 and started operations for the same since Oct 2018. The company had started manufacturing of Footwear (Job work basis) via vendors & sells the same via different channels.
In July 2021, the Lee Cooper agreement was terminated and the same was signed with Reliance Retail Limited for the Lee Cooper segment in the Indian Territory. Later, FSRL signed a Master Distribution Agreement with Reliance Retail Limited. As per the Agreement, FSRL will have distribution rights for the Indian territory to distribute products under the Brand “Lee Cooper” through permitted third-party (excluding Licensee) offline stores including department retail stores, multi brand stores, Shop in Shop stores, hypermarkets, national footwear chain (“Retail stores”).
Please refer to the following link for the previous detailed rationale that captures the Key Financials Drivers and their Description, Liquidity Position. Rating Sensitivities, Key Financial Indicators. View Previous Document
Facilities | Current Rating (2023) | 2022 | 2021 | 2020 | |||||
---|---|---|---|---|---|---|---|---|---|
Type | Tenure | Amount (Rs.Crs.) |
Rating | Date | Rating | Date | Rating | Date | Rating |
Fund Based | LT | 40.00 |
BWR D
(ISSUER NOT COOPERATING* /Downgrade) |
14Mar2022 |
BWR B-Stable
(Downgrade) |
11Feb2021 |
BWR BCredit Watch with Negative Implications
(Downgrade) |
13Apr2020 |
BWR A-Credit Watch with Negative Implications
(Downgrade) |
0.00 |
NA
|
NA |
NA
|
NA |
NA
|
27May2020 |
BWR BBB+Credit Watch with Negative Implications
(Downgrade) |
||
0.00 |
NA
|
NA |
NA
|
NA |
NA
|
07Aug2020 |
BWR BB+Credit Watch with Negative Implications
(Downgrade) |
||
0.00 |
NA
|
NA |
NA
|
NA |
NA
|
18Nov2020 |
BWR BB-Credit Watch with Negative Implications
(Downgrade) |
||
Non Fund Based | ST | 0.00 |
NA
|
14Mar2022 |
BWR A4
(Withdrawal) |
11Feb2021 |
BWR A4
(Reaffirmation) |
13Apr2020 |
BWR A2+
(Downgrade) |
0.00 |
NA
|
NA |
NA
|
NA |
NA
|
27May2020 |
BWR A3+
(Downgrade) |
||
0.00 |
NA
|
NA |
NA
|
NA |
NA
|
07Aug2020 |
BWR A4+
(Downgrade) |
||
0.00 |
NA
|
NA |
NA
|
NA |
NA
|
18Nov2020 |
BWR A4
(Downgrade) |
||
Grand Total | 40.00 | (Rupees Forty Crores Only) |
BWR complexity levels are meant for educating investors. The BWR complexity levels are available at www.brickworkratings.com / download / ComplexityLevels.pdf. Investors queries can be sent to info@brickworkratings.com.
Hyperlink/Reference to applicable CriteriaAnalytical Contacts | |
---|---|
Heta Mehta Senior Manager - Ratings Board : +91 22 2831 1426, +91 22 2831 1439 heta.m@brickworkratings.com |
Bal Krishna Piparaiya Principal Director - Ratings Board : +91 22 2831 1426, +91 22 2831 1439 piparaiya.bk@brickworkratings.com |
1-860-425-2742 | media@brickworkratings.com |
SL.No. | Name of the Bank/Lender | Type Of Facilities | Long Term(Rs.Crs.) | Short Term(Rs.Crs.) | Total(Rs.Crs.) |
---|---|---|---|---|---|
1 | IDFC First Bank Limited | Cash CreditSanctioned | 40.00 | _ | 40.00 |
Total | 40.00 | 0.00 | 40.00 | ||
TOTAL (Rupees Forty Crores Only) |
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