Brickwork Ratings downgrades the long term ratings for the Bank Loan Facilities of Rs. 11.12 Crs. of Hayagreeva Educational and Charitable Trust based on best available information, as the issuer did not cooperate.
ParticularsFacilities** | Amount (Rs.Crs.) | Tenure | Rating# | ||
---|---|---|---|---|---|
Previous | Present | Previous (20 Feb 2023) |
Present | ||
Fund Based | 11.12 | 11.12 | Long Term |
BWR C+
Continues to be in ISSUER NOT COOPERATING* category/Downgraded |
BWR C
Continues to be in ISSUER NOT COOPERATING* category/Downgraded |
Grand Total | 11.12 | 11.12 | (Rupees Eleven Crores and Twelve lakhs Only) |
Downgraded the long term rating to BWR C (Issuer Not Cooperating) based on best available information as the issuer did not cooperate. The rating was due for a review in February 2024. BWR took up with the issuer to provide the required information over emails and through telephone calls. Despite the best efforts of BWR to get the minimum required information for a review, the entity has not provided the same. In the absence of adequate information from the company, BWR is unable to assess the concern’s financial performance. Besides, No Default Statement has not been submitted by the client every month, despite follow-up. Thus, BWR has downgraded the long term rating to BWR C “Issuer not Cooperating”.
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 the required information for a review of the assigned rating may also be accompanied by financial stress. Users of the credit ratings should therefore take into account the possible deterioration in the credit quality of the rated entity arising from its non-transparency and withholding of information required for a review of the rating.
ABOUT THE ENTITYMacro Economic Indicator | Sector | Industry | Basic Industry |
---|---|---|---|
Consumer Discretionary | Consumer Services | Other Consumer Services | Education |
Hayagreeva Educational and Charitable Trust was established in the year 2011 at Pollachi Taluk, Coimbatore. HECT is registered as a public charitable trust. The Trust has established an Engineering College known as "Pollachi Institute of Engineering and Technology" in 2011 in the rural area of Poosaripatti village in Pollachi Taluk, Coimbatore. HECT has also established the Arts & Science College known as "Pollachi Arts & Science College" in 2013 in the same campus.
Note: As per info available on Apr-2017.
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
No outstanding ratings with other CRAs.
ANY OTHER INFORMATIONNA
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 | 11.12 |
BWR C
(Continues to be in ISSUER NOT COOPERATING* category/Downgraded) |
20Feb2023 |
BWR C+
(Continues to be in ISSUER NOT COOPERATING* category/Downgraded) |
23Feb2022 |
BWR B-Stable
(Downgrade/ISSUER NOT COOPERATING*) |
NA |
NA
|
Grand Total | 11.12 | (Rupees Eleven Crores and Twelve 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 | |
---|---|
Jeet Vishvabandhu Bhatt Ratings Analyst jeet.b@brickworkratings.com |
Hari Kishan Yadav Associate Director - Ratings hari.ky@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 | Union Bank of India | Term Loan | 8.40 | _ | 8.40 | |
2 | Union Bank of India | Term Loan | 2.72 | _ | 2.72 | |
Total | 11.12 | 0.00 | 11.12 | |||
TOTAL (Rupees Eleven Crores and Twelve lakhs Only) |
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About Brickwork RatingsBrickwork Ratings (BWR), a Securities and Exchange Board of India [SEBI] registered Credit Rating Agency and accredited by Reserve Bank of India [RBI], offers credit ratings of Bank Loan, Non- convertible / convertible / partially convertible debentures and other capital market instruments and bonds, Commercial Paper, perpetual bonds, asset-backed and mortgage-backed securities, partial guarantees and other structured / credit enhanced debt instruments, Security Receipts, Securitization Products, Municipal Bonds, etc. BWR has rated over 11,560 medium and large corporates and financial institutions’ instruments. BWR has also rated NGOs, Educational Institutions, Hospitals, Real Estate Developers, Urban Local Bodies and Municipal Corporations. BWR has Canara Bank, a leading public sector bank, as one of the promoters and strategic partner.
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