Ind-Ra upgrades Steel Strips Wheels to 'IND A-' with Positive outlook

The upgrade follows SSWL’s healthy operating performance and improvement in credit metrics in 2HFY21 and 1QFY22.

Sep 21, 2021 11:09 IST India Infoline News Service

Steel Strips Wheels
India Ratings and Research (Ind-Ra) has upgraded Steel Strips Wheels Limited’s (SSWL’s) Long-Term Issuer rating to ‘IND A-’ from ‘IND BBB+’. The Outlook is Positive.

The upgrade follows SSWL’s healthy operating performance and improvement in credit metrics in 2HFY21 and 1QFY22.

According to the rationale report, the Positive Outlook reflects Ind-Ra’s expectation of continued improvement in FY22 owing to an increase in sales from margin-accretive alloy wheel and export segments.

Resultantly, Ind-Ra expects SSWL's adjusted net leverage to reduce to below 3.5x by FYE22 (FYE21:5.5x) and further to below 3x by FYE23.

At around 11:24 AM, Steel Strips Wheels was trading at Rs1,705 per piece down by Rs6.05 or 0.35% on Sensex.

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