Credit Analysis & Research (CARE) reaffirmed 'AA-' ratings to Wockhardt's long term bank facilities of Rs 2.95 billion.

CARE reaffirmed 'A1+' rating to the company's short term bank facilities of Rs 2.22 billion.

The ratings derive strength from Wockhardt's healthy financial risk profile marked by consistent growth in revenues, economies of scale, healthy profitability margins coupled with lower gearing levels on a net debt basis, liquidity and debt coverage indicators in FY13 and H1FY14.

Furthermore, the rating factors in WL's long track record, extensive experience of the promoters and well-established presence in the global pharmaceutical industry, its well-diversified product portfolio having established brands catering pharmaceutical industry, its well-diversified product portfolio having established brands catering equipped R&D facilities mainly in complex generics. 
 
However, the ratings are constrained by its higher dependence on regulated markets, decline in revenues and profitability margins expected on account of regulatory actions, increasing competition in the global generics market along with increasing pricing pressures and exposure to foreign exchange fluctuations. 

Going forward, delay in resolving the regulatory issues imposed at its manufacturing plants as well as obtaining fresh approvals for new drugs, resulting into adverse impact on profitability and liquidity would remain as key rating sensitivities. 

Shares of the company declined Rs 5.30, or 1.27%, to trade at Rs 412.90 at the BSE (1.57 p.m., Monday).