CRISIL has reaffirmed 'A1+/AA+/Stable' ratings on the bank facility and debt instruments of VST Industries (VST). The ratings continue to reflect VST's strong financial risk profile and established market position supported by strong brands.

These rating strengths are partially offset by VST's small market share, regional concentration in revenue, and susceptibility to regulatory changes in the tobacco industry.

CRISIL believes that VST will sustain its credit risk profile, driven by its strong financial risk profile and stable business position. The outlook may be revised to 'Positive' in case of sustained material improvement in the company's market share and net worth.

Conversely, the outlook may be revised to 'Negative' if VST's financial risk profile is adversely affected by diversification into unrelated businesses involving significant capex, or in case of significant deterioration in its business risk profile on account of changes in the regulatory framework.

Shares of the company declined Rs 1.50 or 0.10%, to settle at Rs 1,495. The total volume of shares traded was 6,942 at the BSE (Monday).