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RAPAPORT... CARE Ratings reaffirmed a BBB+ rating on Shrenuj & Co.'s $140 million (Rs. 763 crore) long-term bank facility as well as maintained an A3 rating on the company's $43 million (Rs. 235 crore) short term facility. In determining the risk, the ratings agency weighed Shrenuj & Co.'s consolidated financial statement, the experience, resourcefulness and track record of the promoters in the gems and jewelry industry, the company's De Beers sightholders status and the company's diversified presence across the globe. The ratings were further supported by Shrenuj's presence across the industry's value chain, according to CARE. The reaffirmed ratings were constrained by thin margins, dependence upon working capital and an elongated working capital cycle. Additionally, ratings were constrained by the risk of volatile prices for diamonds and the rupee exchange rate, according to CARE.
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