Moody's gives Kalyan Jewellers, notes B2

Moody's Investors Service said it gave a B2 corporate family rating to Kalyan Jewellers India Ltd. (KJIL) and a backed senior secured bond rating of B2 to the planned dollar-denominated bonds to be sold by KJIL's wholly-owned subsidiary, Kalyan Jewellers FZE. The notes will be guaranteed by KJIL on an unsecured basis.

"The B2 CFR reflects KJIL's position as the second-largest company in the fragmented Indian jewelry market, albeit with a market share of only 2% of the overall market and about 6% of the organized market," said Nidhi Dhruv, a Moody's vice president and senior analyst, in a press release.

Dhruv added she sees leverage declining to 4.2x-4.7x in fiscal 2023-24 based on debt reducing to Rs. 38.8 billion for fiscal year ending March 2023, down from Rs. 41.5 billion for fiscal 2021,

The proceeds will be used for refinancing debt and for general corporate purposes.

The outlook is stable.

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