June 13, 2014
Mumbai
Hester Biosciences Limited
 
Ratings Suspended
 
Total Bank Loan Facilities Rated Rs.281.9 Million
Long Term Rating Suspended
Short Term Rating Suspended
(Refer to Annexure 1 for Facility-wise details)

CRISIL has suspended its ratings on the bank facilities of Hester Biosciences Ltd (Hester). The suspension of ratings is on account of non-cooperation by Hester with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, Hester is yet to provide adequate information to enable CRISIL to assess Hester's ability to service its debt. The suspension reflects CRISIL's inability to maintain a valid rating in the absence of adequate information. CRISIL considers information availability risk as a key credit factor in its rating process and non-sharing of information as a first signal of possible credit distress, as outlined in its criteria 'Information Availability Risk in Credit Ratings'.

About the Company

Hester was established in 1987 as a private limited company and reconstituted as a public limited company in 1993. The company manufactures poultry vaccines and has also entered into poultry biologicals, large animal vaccines, and biologicals. 

Annexure 1 - Details of various bank facilities
Current facilities Previous facilities
Facility Amount (Rs.Million) Rating Facility Amount (Rs.Million) Rating
Bank Guarantee 1.6 Suspended Bank Guarantee 1.6 CRISIL A3+
Cash Credit 145 Suspended Cash Credit 145 CRISIL BBB/Stable
Term Loan 107.3 Suspended Term Loan 107.3 CRISIL BBB/Stable
Working Capital Demand Loan 28 Suspended Working Capital Demand Loan 28 CRISIL BBB/Stable
Total 281.9 -- Total 281.9 --
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Last updated: May, 2013

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June 13, 2014

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