CRISIL has reaffirmed 'AA-/Stable' and 'A1+' ratings on commercial paper programme and bank loan facilities of Gujarat Fluorochemicals.

CRISIL's ratings on Gujarat Fluorochemicals' (GFL's; part of the GFL group) commercial paper programme and bank loan facilities continue to reflect the strong market position of the group's chemical division and a strong financial risk profile.

These rating strengths are partially offset by the change in the GFL group's business risk profile, with an increase in the contribution from relatively high risk non-chemicals divisions; and exposure to high volatility in chemical division.

CRISIL believes that GFL group will continue to benefit from its strong market position in the chemicals segment and strong financial risk profile over the medium term. The outlook may be revised to 'Positive' if the GFL group's non-chemical division demonstrates an improvement in its business risk profile led by its scale of operations and sustained improvement in its cash accruals.

Conversely, the outlook may be revised to 'Negative' if GFL is unable to sustain the profitability of its chemical division or reports deterioration in its capital structure due to its large debt-funded capex programme or acquisition.

Shares of the company declined Rs 1.9, or 0.83%, to trade at Rs 226.50. The total volume of shares traded was 7,193 at the BSE (12.35 p.m., Wednesday).