Henkel Spic's CP gets P1 plus

THE CREDIT Rating Information Services of India (Crisil) has assigned P1 plus rating to the Rs. 10 crore commercial paper programme of Henkel Spic India (HSIL). The rating is based primarily on the strong support it enjoys from its highly rated parent company, Henkel KGaA (S&P AA minus/A1 plus/ negative).

The rating is also influenced by the moderate gearing of HSIL, its reasonable growth in the domestic detergents and cosmetics market and its favourable financial outlook over the medium to long term. These comforts are partly offset by the relatively poor stand-alone financials of the company mainly on account of heavy expenditure on marketing and brand building and the well entrenched position of its competitors in the detergents and cosmetics market.

HSIL is a 51 per cent subsidiary of Henkel KGaA, and is engaged in manufacture of eco-friendly detergents catering to the medium to high end of the market. The company also has a limited presence in the toilet soaps / cosmetics segment and cleaners.

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Section  : Business
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