A1 plus for Varun Shipping

ICRA has assigned A1 plus (SO) (pronounced A one plus structured obligation) rating to the Rs. 36.26 crore fully convertible debenture programme of Varun Shipping Company, indicating highest safety in the short term. The rating is based on a structured payment mechanism wherein repayment of interest has been secured by an unconditional and irrevocable guarantee from ICICI.

VSCL operates in four sectors, namely, the LPG sector, oil products/easy chemicals sector, dry bulk sector and the offshore sector. The company has adopted a strategy of developing a mixed and diversified fleet and at present owns and operates a fleet of 13 vessels, including two on bare-boat charter. The outlook for the shipping industry has improved considerably in the last calendar year with freight rates in most segments having risen significantly over 1999.

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Section  : Business
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