ICRA assigns rating on Setco Automotive's long term non-convertible debentures

The assigned rating considers SAL’s ongoing irregularities in servicing of its bank debt obligations.

Jun 04, 2021 04:06 IST India Infoline News Service

Setco Automotive Limited has informed that ICRA has assigned  [ICRA]D rating on Long term - NCD worth Rs350cr of the company.

For arriving at the ratings, ICRA has taken a consolidated view of Setco Automotive Limited (SAL), and its subsidiaries, given the close business, financial and managerial linkages among them.

The assigned rating considers SAL’s ongoing irregularities in servicing of its bank debt obligations on account of weak liquidity position arising from its stretched financial profile.

The rating, however, takes into account the extensive experience of the promoters, established operational track record and strong relationships with original equipment manufacturers (OEM) in the M&HCV clutch manufacturing business.

Setco Automotive ended at Rs20.15 apiece down by Rs0.15 or 0.74% on the BSE.

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