CRISIL reaffirms credit rating on Suprajit Engineering's bank loan facilities

8 Feb 2022 , 12:08 PM

CRISIL Ratings has removed the ratings on the bank facilities of Suprajit Engineering Limited (SEL; part of the Suprajit group) from ‘Rating Watch with Developing Implications’. The ratings have been reaffirmed at ‘CRISIL AA/CRISIL A1+’ while a ‘Stable’ outlook has been assigned to the long-term rating.

Further, CRISIL Ratings had placed the ratings of SEL on watch with developing implications on November 8, 2021, following the company’s announcement of the acquisition of the low duty cable business of Kongsberg Automotive ASA; the enterprise value of which is estimated at around US$ 42 million. CRISIL has been in discussions with SEL’s management to understand the impact of the acquisition.

The reaffirmation reflects CRISIL’s belief that SEL’s business risk profiles shall continue to benefit over the medium term from the acquisition of the low duty cable business of Kongsberg Automotive ASA. 

For arriving at the ratings, CRISIL Ratings has combined the business and financial risk profiles of SEL and its wholly owned subsidiaries.

At around 12:09 PM, Suprajit Engineering was trading at Rs398.10 apiece down by Rs0.15 or 0.04% on the BSE.