Brickwork Ratings downgrades the long-term and short-term ratings for the Bank Loan Facilities of Rs. 62.75 Crs. of East West Freight Carriers Ltd based on best available information, as the issuer did not cooperate.
ParticularsFacilities** | Amount (Rs.Crs.) | Tenure | Rating# | ||
---|---|---|---|---|---|
Previous | Present | Previous (27 Jan 2023) |
Present | ||
Fund Based | 54.25 | 54.25 | Long Term |
BWR BBB- /Negative
Reaffirmation |
BWR BB
/Stable ISSUER NOT COOPERATING* /Downgrade |
(4.30) | (4.30) | ||||
8.00 | 8.00 | Short Term |
BWR A3+
Reaffirmation |
BWR A4 +
ISSUER NOT COOPERATING* /Downgrade |
|
Non Fund Based | 0.50 | 0.50 | Short Term |
BWR A3+
Reaffirmation |
BWR A4 +
ISSUER NOT COOPERATING* /Downgrade |
(0.00) | (0.00) | ||||
(8.00) | (8.00) | ||||
Grand Total | 62.75 | 62.75 | (Rupees Sixty Two Crores and Seventy Five lakhs Only) |
Brickwork Ratings (BWR) had last rated the bank loan facilities of Rs 62.75 Crs on 27-Jan-2023 by reaffirming the ratings at BWR BBB-/Negative / BWR A3+, ISSUER NOT COOPERATING*. BWR has consistently taken up with the company through emails and telephone calls to provide the requisite information for the review of the ratings. Despite the best efforts of BWR to get at least the minimum required information for a review, the company has not been submitting the monthly “No Default Statement” (NDS) as required by regulatory guidelines and remains to be non-cooperative. Due to the lack of management cooperation, BWR is unable to assess the company’s financial performance and its ability to service its debt and maintain a valid rating. Hence, owing to lack of management cooperation, Brickwork Ratings downgrades the long-term rating to BWR BB/Stable and downgrades the short-term rating to BWR A4+ and simultaneously migrate the ratings to Issuer Not Cooperating* category, based on best available information.
The lenders/investors may note to exercise due caution while using the rating which mentions "Issuer Not Cooperating" since the rating lacks any projections or forward-looking component as it is arrived at based on the best available information without any management/banker's interaction.
LIMITATIONS OF THE RATING
Information availability risk is a key factor in the assessment of credit risk as generally, non-cooperation by the rated entities to provide required information for a review of the assigned rating may also be accompanied by financial stress. Users of the credit rating should therefore take into account possible deterioration in the credit quality of the rated entity arising from its non-transparency withholding of information required for a review of the rating.
ABOUT THE ENTITYMacro Economic Indicator | Sector | Industry | Basic Industry |
---|---|---|---|
Services | Services | Transport Services | Logistics Solution Provider |
East-West Freight Carriers Ltd was incorporated in 1976 having a registered office in Mumbai, Maharashtra. It is in the business of providing air and ocean freight transportation, third-party logistics solutions, Non-Vessel Operating Common Carrier (NVOCC) operations, warehousing, custom clearances, and other Value Added Services. The Company is specialized in handling DGR Cargo and it has obtained a license to handle logistics of DGR Cargo under the Danger Goods Regulation Act. The Company has a widespread logistical network with 14 Branches spread all over the country as marketing offices and they cater to exports to 176 different countries. (As per information received during FY2023 review)
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
India Ratings migrated the company's ratings to the ISSUER NOT COOPERATING* category w.e.f. 12 Mar 2018 as the agency does not have adequate information to review the ratings and the issuer did not participate in the rating exercise.
ANY OTHER INFORMATIONOn 18Sept2023 India Ratings discontinued voluntary disclosure of issuer ratings in its rating action commentaries (RACs), due to the regulatory requirement. It may be noted that all outstanding instrument ratings remain unaffected and this action should not be construed as a change to the credit profile.
RATING HISTORY FOR THE PREVIOUS THREE YEARS (including withdrawal and suspended)Facilities | Current Rating (2024) | 2023 | 2022 | 2021 | |||||
---|---|---|---|---|---|---|---|---|---|
Type | Tenure | Amount (Rs.Crs.) |
Rating | Date | Rating | Date | Rating | Date | Rating |
Fund Based | LT | 54.25 |
BWR BB/Stable
(ISSUER NOT COOPERATING* /Downgrade) |
27Jan2023 |
BWR BBB- Negative
(Reaffirmation) |
24Mar2022 |
BWR BBB- Negative
(Reaffirmation) |
NA |
NA
|
FB SubLimit | LT | (4.30) |
BWR BB/Stable
(ISSUER NOT COOPERATING* /Downgrade) |
NA |
NA
|
NA |
NA
|
NA |
NA
|
Fund Based | ST | 8.00 |
BWR A4+
(ISSUER NOT COOPERATING* /Downgrade) |
27Jan2023 |
BWR A3+
(Reaffirmation) |
24Mar2022 |
BWR A3+
(Reaffirmation) |
NA |
NA
|
Non Fund Based | ST | 0.50 |
BWR A4+
(ISSUER NOT COOPERATING* /Downgrade) |
27Jan2023 |
BWR A3+
(Reaffirmation) |
24Mar2022 |
BWR A3+
(Reaffirmation) |
NA |
NA
|
NFB SubLimit | ST | (8.00) |
BWR A4+
(ISSUER NOT COOPERATING* /Downgrade) |
27Jan2023 |
BWR A3+
(Reaffirmation) |
24Mar2022 |
BWR A3+
(Reaffirmation) |
NA |
NA
|
Grand Total | 62.75 | (Rupees Sixty Two Crores and Seventy Five lakhs 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 | |
---|---|
Harshit Rastogi Ratings Analyst harshit.r@brickworkratings.com |
Suryanarayan N Associate Director - Ratings suryanarayan.n@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 | Kotak Mahindra Bank | Loans against PropertyOut-standing | 18.29 | _ | 18.29 | |
2 | Standard Chartered Bank | Loans against PropertyOut-standing | 9.48 | _ | 9.48 | |
3 | Standard Chartered Bank | OverdraftSanctioned | _ | _ | 0.00 | |
Sub-Limit (Bonds & Guarantees) Sanctioned | (0.00) | |||||
4 | Standard Chartered Bank | Import Invoice FinancingSanctioned | _ | 8.00 | 8.00 | |
Sub-Limit (Bank Guarantee) Sanctioned | (8.00) | |||||
Sub-Limit (OD) Sanctioned | (4.30) | |||||
5 | State Bank Of India (SBI) | GECL 1.0Out-standing | 2.38 | _ | 2.38 | |
6 | State Bank Of India (SBI) | CECLOut-standing | _ | _ | 0.00 | |
7 | State Bank Of India (SBI) | GECLOut-standing | 2.20 | _ | 2.20 | |
8 | State Bank Of India (SBI) | Cash CreditSanctioned | 21.90 | _ | 21.90 | |
9 | State Bank Of India (SBI) | Bank GuaranteeSanctioned | _ | 0.50 | 0.50 | |
Total | 54.25 | 8.50 | 62.75 | |||
TOTAL (Rupees Sixty Two Crores and Seventy Five lakhs Only) |
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