Crisil Reaffirmed Highest Grade on Dabur

Ratings firm Crisil on 15 December 2010 reaffirmed its highest grade, AAA/Stable ratings on Dabur's Rs 125 crore long-term bank facilities and Rs 20 crore non- convertible debenture programme. Crisil’s reaffirmation follows Dabur’s decision to go for a USD 100 million deal to acquire US-based Namaste Laboratories and its subsidiaries. Crisil also reaffirmed P1+ ratings on the company's Rs 32.5 crore short-term bank facilities and Rs 200 crore short-term debt programme. According to Crisil the reaffirmation of its highest grade on Dabur reflect Dabur's strong market position in India's fast-moving consumer goods (FMCG) industry, particularly in the natural and herbal products segment as well as the company’s healthy financial risk profile.

The AAA rating is considered to offer the highest degree of safety and is reaffirmed on grounds of timely payment of financial obligations on a long-term scale. F1 ratings on the other hand indicate the high degree of safety regarding timely payment on the instrument, which is of short-term.