CRISIL reaffirms credit ratings assigned to Isgec Engineering's subsidiary; stock adds ~1%

27 May 2022 , 02:22 PM

Isgec Heavy Engineering Limited informed that CRISIL Ratings has revised the credit ratings assigned to its subsidiary.

CRISIL reviewed Isgec Titan Metal Fabricators Private Limited’s bank facilities worth Rs55 crore. It has assigned ‘CRISIL AA’ rating to the company’s Cash Credit and Working Capital Demand Loan worth Rs10 crore with a stable outlook on the same.

The rating agency has assigned a ‘CRISIL A1+’ rating to Isgec’s Letter of credit and Bank Guarantee which has been enhanced to Rs45 crore from the existing Rs30 crore.

According to CRISIL’s rating rationale, the rating on the bank facilities of Isgec Titan Metal Fabricators (ITMFPL) continues to reflect the operational and financial support of IHEL, which has an established position in the heavy engineering capital goods industry; and a robust financial risk profile, with unencumbered cash and liquid investments of more than Rs140 crore as on September 30, 2021, and is estimated to be on similar levels in fiscal 2022.

ISGEC Heavy Engineering is currently trading at Rs497.70 up by Rs2.15 or 0.43% from its previous closing of Rs495.55 on the BSE. The scrip touched an intraday high and low of Rs504.95 and Rs495.25 respectively.