CARE reaffirms credit ratings of Orient Electric's bank facilities

The ratings assigned to the bank facilities of Orient continue to draw support from OEL being part of established C.K. Birla group.

Jul 07, 2021 03:07 IST India Infoline News Service

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Orient Electric Ltd has informed that CARE ratings reaffirmed the ratings of its bank facilities.

Long term bank facilities has been reaffirmed to CARE AA- with stable outlook and short term ratings has been reaffirmed to CARE A1+.

According to the rationale, the ratings assigned to the bank facilities of Orient continue to draw support from OEL being part of established C.K. Birla group, comfortable capital structure, and healthy debt protection metrics.

The ratings further derive comfort from the leading position of OEL in the fan business with strong brand recall. 

The ratings are, however, constrained by working capital intensive nature of operations, volatile raw material prices, seasonality in sale of OEL’s products, risks associated with product warranty and stiff competition in the industry.

The ratings also factor in the project implementation risk for the planned capex in Southern India

At around 3:05 PM, Orient Electric was trading at Rs310.60 per piece up by Rs1.15 or 0.37% on Sensex.

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