United Spirits rises on rating upgrade

United Spirits said CRISIL has revised its outlook on the long term bank facilities and non convertible debentures of the company to 'Positive' from 'Stable' while reaffirmed the rating at 'CRISIL AA+'.

The scrip was currently trading 0.70% higher at Rs 596.45. It has traded in the range of Rs 595.65 and Rs 598.55 so far during the day.

The short term rating and commercial paper has been reaffirmed at 'CRISIL A1+', United Spirits (USL) informed in an exchange filing made after market hours on Monday.

The outlook revision reflects the expectation of improvement in USL's credit profile, commensurate with better cash accrual and leverage over the medium term.

According to CRISIL, the ratings reflect USL's leadership position in the spirits industry in India, strong and diversified product portfolio, and operational and technical support it receives from its parent, Diageo Plc (rated A-/Stable/A2 by S&P Global). These strengths are partially offset by highly controlled regulatory regime in the industry and exposure to intense competition.

CRISIL believes USL may sustain its improved operating performance, supported by favourable change in the product mix and cost efficiency over the medium term.

United Spirits, a Diageo Group company, is an Indian alcoholic beverages company, and the world's second-largest spirits company by volume.

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