Chennai, May 11 (IANS): With Kamal Haasan (KH) proprietary company owned by actor-turned-politician Kamal Haasan not cooperating, credit rating agency Crisil changed the firm's rating to CRISIL B+ /Stable/Issuer Not Cooperating.
Recently Crisil in a statement announced the migration of the proprietary business KH to CRISIL B+/Stable (Issuer Not Cooperating).
According to Crisil, it has been consistently following up with Kamal Haasan for obtaining information through letters and emails dated April 14, 2021 and April 19, 2021 among others, apart from telephonic communication. However, the issuer has remained non-cooperative.
"The investors, lenders and all other market participants should exercise due caution with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company," Crisil said.
"Such non co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward looking component," the rating agency added.
According to Crisil, KH is a proprietorship firm with interests in directing, acting, and producing mainly involved in Tamil film industry.
In January 2020 Crisil had rated KH as CRISIL B+/Stable for a total bank loan facility of Rs 25 crore.
"The rating reflects high degree of geographic concentration in revenue profile and exposure to risks inherent to the film industry. These weaknesses are partially mitigated by established presence and proprietor's extensive industry experience," Crisil then said.
As per the election nomination papers filed by Kamal Haasan while contesting in the Tamil Nadu Assembly polls in April, his total loan outstanding was about Rs 49.50 crore (housing/mortgage/insurance and other loans from Canara Bank about Rs 33.16 crore, loans from individuals/entities about Rs 15.33 crore and other liabilities about Rs 1.01 crore).
Kamal Haasan has floated a political party Makkal Needhi Maiam (MNM). The party contested in the 2019 Lok Sabha polls and 2021 Tamil Nadu Assembly polls and drew blank in both.