Baba Ramdev’s Patanjali downgraded on Ruchi Soya acquisition risks
Updated : October 07, 2019 08:06 AM IST
Care Ratings has downgraded Patanjali Ayurved Limited’s (PAL) rating on account of it creating a special purpose vehicle for the purchase of Ruchi Soya and the loans and advances that the firm has given out to its various group entities.
The long-term facilities of PAL, co-founded by yoga guru and entrepreneur Baba Ramdev, have been downgraded from A+ to A-, while its short-term facilities will now carry a rating of A2+ from A1 earlier.
Ratings downgrade for an FMCG firm is pretty rare and the action on Patanjali is another indication of the continued slowdown in the economy.