Shares of Wockhardt fell almost 2 percent after climbing over a percent in early trade on BSE on February 26, a day after rating agencies CARE Ratings and India Ratings revised the company's ratings.
CARE Ratings has revised the ratings of the company's long-term bank facilities as "CARE BB+ (under credit watch with positive implications)" from “CARE BB+" with a stable outlook.
Ratings on short-term bank facilities have been revised as “CARE A4+ (under credit watch with positive implications)” from “CARE A4+” and the ratings on the proposed issue of NCDs for an amount of Rs 500 crore of the company as “CARE BB+; (Under credit watch with positive implications)” from “CARE BB+; Stable".
India Ratings and Research has revised the company’s ratings for short-term Bank facilities to “IND A4+/RWE” from “IND A4+”; and for long-term loan facilities rating to “IND BB+/ RWE” from “IND BB+/Negative”.
RWE (Rating Watch Evolving) indicates that ratings may be affirmed, downgraded or upgraded.
As per a regulatory filing by the company, India Ratings have revised the rating keeping in view the decision to divest the domestic branded business, ease immediate liquidity requirement and improvement in operating profitability in 9 months of FY2020.Shares of Wockhardt traded 1.73 percent down at Rs 340 on BSE around 10:00 hours IST.