Brickwork reaffirms Credit Ratings for RAJ TV

CHENNAI | MUMBAI | RAJKOT – Brickworks ratings has reaffirmed the Credit (Short Term & Long Term) facilities ratings availed by RAJ TV NETWORK LTD.

In a regulatory Credit Rating filing submitted to the Indian Bourses on Friday, the company said, Brickwork Ratings India Pvt Ltd, the rating agency has assigned the credit rating on Bank Loan Facilities amounting to 30 crore Rs.(300 million), which includes fund based cash credit and term loan.

The Rating agency has reaffirmed the credit ratings BWR BBB- (Pronounced BWR Triple B Minus) with STABLE Outlook, to the company’s Credit facilities programs.

The credit rating update had hit the exchanges before the trading session kicked-off for Friday, but the shares of RAJ TV continued to trail on choppy session.

Explaining the Rationale behind such ratings, Brickwork Ratings note said, “The ratings reaffirmation is based on the improved business performance in FY18 versus FY17, also the experience of the promoters in the industry, three decade long presence of the company in South Indian Television Industry, recent acquisition of movie rights which gives better revenue visibility in the near future and good presence and comectivity in South India and Middle East countries.”

The ratings however constrained by moderate scale of business, working capital intensive nature of business, and intense competition from regional broadcasters.