Brickwork Ratings downgrades the long-term ratings for the Bank Loan Facilities of Rs. 212.67 Crs. of Orbit Resorts Limited based on best available information, as the issuer did not cooperate.
ParticularsFacilities** | Amount (Rs.Crs.) | Tenure | Rating# | ||
---|---|---|---|---|---|
Previous | Present | Previous (03 Nov 2023) |
Present | ||
Fund Based | 212.67 | 212.67 | Long Term |
BWR B+ /Stable
ISSUER NOT COOPERATING* /Downgrade |
BWR B
/Stable Continues to be in ISSUER NOT COOPERATING* category/Downgraded |
Grand Total | 212.67 | 212.67 | (Rupees Two Hundred Twelve Crores and Sixty Seven lakhs Only) |
Brickwork Ratings has downgraded the rating of the long-term bank loan facilities of Orbit Resorts Limited. for Rs. 212.67 crores to BWR B/Stable (aggregate rated amount Rs.212.67 crores), while retaining the same in the Issuer Not Cooperating’ category, based on best available information as the Issuer did not cooperate.
The ratings is due for review in Nov 2024. BWR took up with the issuer and its banker over emails and through telephone calls to provide the required information. Despite the best efforts of BWR to get at least the minimum required information for a review, neither the company nor its banker has provided the same. In the absence of adequate information from the company and its banker, BWR is unable to assess the company’s financial performance or its ability to service its debt and maintain a valid rating. The company has also been irregular with respect to the submission of the monthly No Default Statements. Hence, based on best available information, continued lack of management cooperation, non-submission of NDS, and lack of banker’s feedback, the long-term rating is downgraded and continued in the Issuer Not Cooperating* category, as the Issuer did not cooperate.
The lenders/investors may note to exercise due caution while using the above rating which mentions "Issuer Not Cooperating" since the rating lack 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 |
---|---|---|---|
Consumer Discretionary | Consumer Services | Leisure Services | Hotels & Resorts |
Orbit Resorts Limited was incorporated in 1988 and the company has multiple business divisions. The Hotel division has established two hotels namely Trident Gurgaon & The Oberoi Gurgaon on plot No.443 Udyog Vihar, Ph-V, Gurgaon. Both the hotels are being managed by EIH Ltd. (Oberoi Group). The Trident Gurgaon commenced commercial operation in February 2004 and the Oberoi commenced commercial operations in March 2011. In addition to that, the company has a captive solar power plant of 7.5 MW at village Balasar, Dist. Sirsa, Haryana to supply power to the two hotels of the company. The company also has a transport division which runs under the name of Indo Canadian Transport Co. and it has currently 72 buses to transport passengers from international flights arriving at terminal 3 of Indira Gandhi International Airport, New Delhi to various cities of Punjab.
The trading in equity shares of the Company "Powerful Technologies Limited" is suspended w.e.f May 24, 2021,
Note: As per information available with BWR in Aug 2022.
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
Not Applicable
ANY OTHER INFORMATIONIVR Ratings Vide its press release dated Apr 02, 2024, has upgraded the long-term ratings IVR BB+/Stable for the Bank loan facilities of amounting Rs. 192.74 Crs
RATING HISTORY FOR THE PREVIOUS THREE YEARS (including withdrawal and suspended)Facilities | Current Rating (2024) | 2024 (History) | 2023 | 2022 | 2021 | ||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Type | Tenure | Amount (Rs.Crs.) |
Rating | Date | Rating | Date | Rating | Date | Rating | Date | Rating |
Fund Based | LT | 212.67 |
BWR B/Stable
(Continues to be in ISSUER NOT COOPERATING* category/Downgraded) |
03Nov2023 |
BWR B+ Stable
(ISSUER NOT COOPERATING* /Downgrade) |
NA |
NA
|
18Aug2022 |
BWR BB-Stable
(Upgrade) |
21May2021 |
BWR D
(Reaffirmation) |
Grand Total | 212.67 | (Rupees Two Hundred Twelve Crores and Sixty Seven lakhs Only) |
Analytical Contacts | |
---|---|
Sandeep A Pawar Rating Analyst sandeep.ap@brickworkratings.com |
Ravi Rashmi Dhar Associate Director - Ratings ravi.d@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.) | Complexity of the Instrument |
---|---|---|---|---|---|---|
1 | Punjab & Sind Bank | Term LoanOut-standing | 84.53 | _ | 84.53 | Simple## |
2 | Punjab & Sind Bank | GECLOut-standing | 16.29 | _ | 16.29 | Simple## |
3 | Punjab National Bank | Term LoanOut-standing | 92.55 | _ | 92.55 | Simple## |
4 | Punjab National Bank | GECLOut-standing | 19.30 | _ | 19.30 | Simple## |
Total | 212.67 | 0.00 | 212.67 | |||
TOTAL (Rupees Two Hundred Twelve Crores and Sixty Seven 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.
Instrument | Issue Date | Amount (Rs.Crs) | Coupon Rate (%) | Maturity Date | ISIN Particulars | Complexity of the Instrument |
---|---|---|---|---|---|---|
Nil | Nil | Nil | Nil | Nil | Nil | Nil |
Name of Entity | % Ownership | Extent of consolidation | Rationale for consolidation |
---|---|---|---|
Nil | Nil | Nil | Nil |
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