ICRA has reaffirmed AA-plus rating with a stable outlook on United Spirits Ltd's (USL's) ₹3,425 crore long-term, short-term and non-fund based financial instruments. It also reaffirmed A1-plus rating on USL's commercial paper and has withdrawn the rating on ₹750 crore non-convertible debentures at the company's request as there was no outstanding against the facility. ICRA said the ratings continue to factor in USL's strong operational and financial flexibility besides robust corporate governance and compliance practices by virtue of being a 55.94 per cent subsidiary of Diageo Plc. ICRA said the ratings also consider USL's strong market position in the domestic spirits industry supported by its large distribution network, wide product portfolio and presence across price points, flavours and segments. With sales volumes of 79.7 million cases during FY2020, the company is the largest player in the domestic spirits industry.

Source: Mint February 27, 2021 09:11 UTC