Credit rating agency, CARE has retained the PR1+ rating assigned to the Short-term Bank Facilities aggregating Rs 9,000 million of Ranbaxy (Q,N,C,F)* Laboratories (RLL).

This rating is applicable for facilities having tenure up to one year.

Facilities with this rating would have strong capacity for timely payment of short-term debt obligations and carry lowest credit risk.

Rating Rationale

The rating continues to factor in RLL`s dominant position in the international generics and Indian formulations market, wide geographical presence, broad product range, strong R&D capabilities and robust product pipeline comprising Abbreviated New Drug Applications (ANDAs) including First to File (FTF) applications.

Going forward, notional mark-to-market losses on forex derivative contracts, impact of US Food and Drug Administration (USFDA)-related regulatory issues and drug pricing pressure in the key regulated generics market would remain the key rating sensitivities.

Shares of the company declined Rs 1.15, or 0.29%, to trade at Rs 390.50. The total volume of shares traded was 364,579 at the BSE (Friday).