CARE assigns ‘BBB-/Stable' rating to International Combustions' bank facilities; stock skids ~2%

14 Jul 2022 , 03:02 PM

International Combustions Limited informed that Care Ratings Limited assigned the long-term rating of ‘CARE BBB-’ on the fund-based and non-fund-based working capital credit facilities availed by the Company on a consortium basis.

The long-term rating outlook has been stated as Stable. CARE has also assigned the aforementioned facilities the short-term rating of CARE A3 (pronounced as CARE A three) [signifying a moderate degree of safety regarding timely servicing of financial obligations and carrying a higher credit risk as compared to instruments rated in the two higher categories].

CARE assigned the above ratings primarily based on the Company’s experienced promoters with established track records in the material handling and industrial gear segments, reputed and diverse clientele, moderate order book position providing revenue visibility in the near term, and technological tie-ups with reputed global players that enhance the Company’s competitive position.

The rating also considers the Company’s moderate financial performance, with significant improvement expected in FY 2021-22 due to increased demand in the material handling equipment and industrial gear segments. The rating is also bolstered by a satisfactory capital structure characterized by low reliance on external debt.

At around 3.06 PM, International Combustion was trading at Rs263.30 down by Rs4.65 or 1.74% from its previous closing of Rs267.95 on the BSE. The scrip hit day’s high and low of Rs272.95 and Rs263.30 respectively.