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| Product | Quantum (Rs. Cr) | Long Term Rating | Short Term Rating |
| Bank Loan Ratings | 148.89 | ACUITE C | Downgraded | Issuer not co-operating* | - |
| Bank Loan Ratings | 219.44 | ACUITE D | Downgraded | Issuer not co-operating* | - |
| Bank Loan Ratings | 40.00 | - | ACUITE D | Downgraded | Issuer not co-operating* |
| Total Outstanding Quantum (Rs. Cr) | 408.33 | - | - |
| Rating Rationale |
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Acuité has Downgraded the long term rating to ‘ACUITE C (read as ACUITE C)’ from‘ACUITE B+’ (read as ACUITE B plus) on the Rs 148.89 Cr bank facilities of LIGARE AVIATION LIMITED (LAL).
The long term faciliies by the same bank from publicly avaialble information has also been downgraded to ‘ACUITE D' (read as ACUITE D)’ from‘ACUITE B+’ (read as ACUITE B plus) and the short term to ‘ACUITE D' (read as ACUITE D)’ from ‘ACUITE A4 (read as ACUITE A four)’ on the Rs. 259.44 crore bank facilities of Ligare Aviation Limited (LAL). The rating continues to be an indicative rating. The downgrade is based on the publicly available information. |
| About the Company |
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Delhi based - Ligare Aviation Limited (LAL) incorporated in 1996 provides non-scheduled charter services. The erstwhile Religare Aviation Limited was changed to LAL in 2012. The company is a step-down subsidiary of RHC Holdings Private Limited (RHC) and a 100% subsidiary of Ligare Voyages Limited (LAL). LAL has a fleet of 11 aircrafts which includes three jets, two helicopters and six turboprops. Four turboprops are owned by the company (on its own books) and the rest are on operating lease of 10 years. The present promoters of the company are Mr. Rahul Kwatra, Ms. Shivangi Singh, Ms. Reena, Mr. Gopinath Mohan Gopakumar and Ms. Shrestha Dev Burman.
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| Non-cooperation by the issuer/borrower: |
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Acuité has been requesting for data, information and undertakings from the rated entity for conducting surveillance & review of the rating. However, the issuer / borrower failed to submit such information before the due date. Acuité believes that information risk is a critical component in such ratings, and noncooperation by the issuer along with an unwillingness to provide information could be a sign of potential deterioration in its overall credit quality. This rating is, therefore, being flagged as “Issuer not-cooperating”, in line with prevailing SEBI regulations and Acuité’s policies.
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| Limitation regarding information availability: |
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The rating is based on information available from sources other than the issuer / borrower (in the absence of information provided by the issuer / borrower). Acuité has endeavoured to gather information about the entity / industry from the public domain. Therefore, Acuité cautions lenders and investors regarding the use of such information, on which the indicative credit rating is based. |
| About the Rated Entity - Key Financials |
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The rated entity has not shared the latest financial statements despite repeated requests. |
| Rating Sensitivity |
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No information provided by the issuer / available for Acuite to comment upon. |
| Material Covenants |
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Not Applicable |
| Liquidity Position |
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No information provided by the issuer / available for Acuite to comment upon. |
| Outlook |
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Not Applicable |
| Other Factors affecting Rating |
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None |
| Status of non-cooperation with previous CRA |
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None |
| Any other information |
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Acuité is yet to receive the latest No Default Statement (NDS) from the rated entity, despite repeated requests and follow-ups. |
| Applicable Criteria |
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• Service Sector: https://www.acuite.in/view-rating-criteria-50.htm • Default Recognition: https://www.acuite.in/view-rating-criteria-52.htm |
| Note on Complexity Levels of the Rated Instrument |
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In order to inform the investors about complexity of instruments, Acuité has categorized such instruments in three levels: Simple, Complex and Highly Complex. Acuite’ s categorisation of the instruments across the three categories is based on factors like variability of the returns to the investors, uncertainty in cash flow patterns, number of counterparties and general understanding of the instrument by the market. It has to be understood that complexity is different from credit risk and even an instrument categorized as 'Simple' can carry high levels of risk. For more details, please refer Rating Criteria “Complexity Level Of Financial Instruments” on www.acuite.in
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