CRISIL has enhanced the rated amount while retaining 'AA-/Stable/A1+' ratings on the bank facilities and debt programmes of EID Parry (India).

The rating continues to reflect EID Parry's well-established position in the sugar market in South India, the location advantages enjoyed by its mills, and the financial flexibility it derives from being part of the Murugappa group, the rating agency said.

These rating strengths are partially offset by the company's weak financial risk profile and its susceptibility to downturns in the sugar business and to regulatory changes, it said.

The stable outlook reflects CRISIL's belief that EID Parry will gradually improve its financial risk profile over the medium term.

The outlook may be revised to 'Negative' if the improvement in gearing over the medium term is not as per CRISIL's expectations. Conversely, the outlook may be revised to 'Positive' if EID Parry's operating profitability improves substantially resulting in significant improvement in gearing, it said.

Shares of the company declined Rs 0.25, or 0.12%, to trade at Rs 206.25. The total volume of shares traded was 3,200 at the BSE (11.13 a.m., Tuesday).