CRISIL puts Ranbaxy Holding's short-term debt on rtg watch

TEXT: CRISIL puts Ranbaxy Holding's short-term debt on rtg watch
Thursday, Jun 12
.
MUMBAI - Following is the press release from CRISIL Ltd on Ranbaxy
Holding Co. debt programme:
.
Instruments Ratings
Rs.16 Billion Short-Term Debt Programme P1(Placed on Rating
Watch with
Developing
Implications)
.
CRISIL has placed its rating on the short-term debt programme of
Ranbaxy
Holding Company (Ranbaxy Holding) on 'Rating Watch with Developing
Implications'. This follows the announcement today that Daiichi
Sankyo, a
leading Japanese pharmaceutical company, has entered into an agreement
to
acquire the 34.81 per cent stake that the Singh family, Ranbaxy's
promoters,
hold in Ranbaxy Laboratories Ltd (Ranbaxy Laboratories, rated 'P1+/
Rating
Watch with Developing Implications' by CRISIL). Ranbaxy Holding is the
Singh
family's investment company, and a large part of the stake that will
be
transferred is held through this company. CRISIL is in discussions
with
Ranbaxy Holding and its management to study the implications of the
announced
change in shareholding, and will review its outstanding ratings after
evaluating the impact on the credit profile of the company.
About the company
Ranbaxy Holding is a closely-held investment company of the family
of
Malvinder Mohan Singh and Shivinder Mohan Singh, the promoters of
Ranbaxy
Laboratories. The company currently has a stake of more than 26 per
cent in
Ranbaxy Laboratories: the stake accounts for over 80 per cent of
Ranbaxy
Holding's investments and about 60 per cent of its total assets.
Ranbaxy
Holding also has investments in companies in the financial services
and the
healthcare business. The income of Ranbaxy Holding is primarily
derived from
the dividends that it receives from its holding in Ranbaxy
Laboratories, and
interest income earned on loans given to group companies in the
healthcare
and financial services business.
.

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