Wockhardt CP maintains P1+ rating

Crisil has reaffirmed the P1+ rating to the commercial paper programme of Wockhardt. The agency has also upgraded the rating assigned to the non-convertible debenture programme from AA to AA+ and has been removed from rating watch. The revision in rating reflects an improvement in Wockhardt's credit profile arising from the hive-off of the more seasonal businesses of parenterals and agrochemicals into Wockhardt Life Sciences Ltd.

The rating also factors in the company's improved position in domestic pharmaceutical market following the transfer of Merind's pharmaceutical business to Wockhardt and its adequate operational and R&D capabilities. Supporting the rating is a financial profile characterised by moderate gearing and interest coverage ratios. Going forward, the company's growth plans in the international markets and the performance of the company's international ventures would be key rating sensitivities.