Incredible Industries Credit Rating Withdrawn Over Non-Cooperation

Incredible Industries Ltd has requested its credit rating be withdrawn by Infomerics Valuation and Rating Private Limited, effective April 30, 2026. The decision follows Infomerics' classification of the company as 'Issuer Not Cooperating', raising questions about transparency and future financial operations.

Facilities Affected by Withdrawal

The withdrawal impacts approximately ₹45 crore in total working capital facilities. This includes:

• ₹10.68 crore in Cash Credit 1 (CC1)
• ₹10.00 crore in Cash Credit 2 (CC2)
• ₹5.55 crore in Cash Credit 3 (CC3)
• ₹4.77 crore in a proposed Cash Credit facility
• ₹3.00 crore in a Bank Guarantee
• ₹5.00 crore in a Letter of Credit
• ₹6.00 crore in another Letter of Credit

Impact on Creditworthiness and Transparency

The withdrawal means Incredible Industries' previous long-term rating (IVR BBB-/Negative) and short-term rating (IVR A3) from Infomerics are no longer valid for these working capital facilities. This lack of an independent credit assessment can affect the company's future ability to secure loans, potentially increase borrowing costs, and signal transparency concerns to investors and financial institutions. The 'Issuer Not Cooperating' tag is a significant signal, indicating a lack of engagement with a key financial assessment body.

Company Background

Incredible Industries Ltd operates in the industrial products and fabrication manufacturing sector. While the specific reasons for its non-cooperation with Infomerics were not detailed in the company's filing, this move raises questions about its disclosure practices.

What This Means Operationally

Going forward, Incredible Industries will not have Infomerics' independent evaluation for these specific bank facilities. The company may need to secure ratings from other agencies or rely primarily on bank assessments. This reduces publicly available, independent credit risk information for these working capital lines.

Key Risks to Monitor

The primary risk is the erosion of lender and investor confidence due to the 'Issuer Not Cooperating' status, suggesting potential opacity. There's also a risk of difficulty in obtaining future financing or facing higher borrowing costs without updated independent ratings. Regulators or stock exchanges might also increase scrutiny if the non-cooperation continues.

Future Outlook and Tracking

Infomerics Valuation and Rating Private Limited is expected to release further details on the withdrawal. Investors should watch Incredible Industries Ltd's strategy regarding credit ratings and its engagement with rating agencies. Any clarification from the company on the reasons for non-cooperation will be critical. The continued support from banks, which provided No Objection Certificates, will also be important to observe.