ICRA has assigned the short-term rating of 'A1+' for the Rs 2.25 billion (enhanced from Rs 1 billion) Commercial Paper Programme of Network18 Media & Investments (Network18). 

ICRA also has ratings of A and A1+  outstanding for the Rs 2,400 million bank facilities and Rs 750 million short-term loans (sub-limit of non-fund based limits); medium-term rating of MA outstanding for the Fixed Deposits Programme and short-term rating of A1+ (SO) Structured Obligation outstanding for the Rs 1 billion Commercial Paper Programme of Network18. The outlook on the long-term and medium-term rating is Positive. 

The assigned ratings take into account the strong growth in operating profits of Network18 (consolidated) in 2013-14 over the previous year, significant reduction in net losses by virtue of favourable impact of cable digitization, internal cost compression measures and more than halving of interest costs.

Network18 is the holding company of the group's e-commerce and television broadcasting businesses and an operating company for other businesses in the area of digital and print media. ICRA draws comfort from the diversified offerings of the broadcasting business across genres and expects that the addition of ETV's regional channels, post the recent acquisition, will further strengthen the overall operational profile of the company on a consolidated basis.

ICRA notes that the Network18's non-broadcasting businesses continue to experience weak profitability/ losses while some of its existing bouquet of channels may also continue to face profitability pressures arising from rising competitive intensity. Also, in the broadcasting business, there is likely to be recurring need to fund gestation losses in select new channels as also additional investments that may have to be put in for the ETV bouquet of channels. 

Shares of the company settled at Rs 56.90. The total volume of shares traded was 77,091 at the BSE (Tuesday).