16 May 2021: CRISIL changes Kamal Haasan firm's ratings for 'not cooperating'
Credit rating agency CRISIL has changed the ratings for actor-turned-politician Kamal Haasan's proprietary firm, Kamal Haasan (KH), tagging it "not cooperating."
The agency released a statement recently, explaining the lack of information and cooperation from the business's end that led to the new tag.
Now, the rating reads, "CRISIL B+/Stable (Issuer Not Cooperating)," instead of the previous "B+/Stable" tag given in January 2020.
Details: Non-cooperation could stem from 'deterioration in its credit risk profile'
For the unversed, the ratings come with respect to the long-term bank facilities of the propriety company, Kamal Haasan (KH).
Due to non-cooperation, the agency was left helpless to assess the credit quality of the business.
"Such non-cooperation by a rated entity may be a result of deterioration in its credit risk profile. These ratings... lack a forward looking component," the statement added.
Caution: CRISIL warned investors and lenders to exercise 'due caution'
Giving out a further word of warning, the release warded off "investors, lenders, and all other market participants" to exercise "due caution" while dealing with KH.
This is because entities carrying the "Issuer Not Cooperating" tag get the rating "without any management interaction" from CRISIL.
Moreover, the final rating is created based on the "best available or limited or dated information on the company."
Information: Previously, KH's total bank loan facilities stood at Rs. 25cr
According to CRISIL, KH has interests in directing, producing, and acting and is mainly involved in the Tamil film industry.
As per CRISIL's 2020 report, the total bank loan facilities of KH stood at Rs. 25 crore.
Explaining the rating, CRISIL had mentioned that these reflect the "high degree of geographic concentration in revenue profile and exposure to risks inherent to the film industry."
Looking back: Things have been tumultuous for Haasan's party, Makkal Needhi Maiam
Earlier, while filing election nomination papers, the actor-turned-politician had declared assets worth Rs. 176.9 crore in his name.
Notably, his party Makkal Needhi Maiam (MNM) failed to perform well in the 2021 Tamil Nadu Assembly polls (they did not win any seat), and things have been getting heated in recent days.
Key members have been resigning with the blame game rampant among members.
Also see: Kamal Haasan will contest TN polls from Coimbatore South
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