CRISIL reaffirms ratings on M&M’s bank facilities worth Rs 1,350 crore

13 Jan 2023 , 12:41 PM

CRISIL Ratings has reaffirmed its ‘CRISIL AAA/Stable/CRISIL A1+’ ratings on Mahindra and Mahindra Limited’s bank facilities and debt instruments (M&M). CRISIL Ratings has also withdrawn its rating on a Rs500 crore commercial paper at the client’s request because it is not being used. 

The ratings continue to reflect M&M’s leadership in the tractor industry in India, as well as its strong presence in the light commercial vehicles (LCVs) segment and the benefits of diversification.

The ratings also take into account the company’s strong financial risk profile, which is supported by a strong balance sheet with low leverage and high financial flexibility. These advantages are partially offset by cyclicality in the farm equipment (tractor) and automotive (auto) segments, as well as risks associated with acquisitions and investments in subsidiaries/joint ventures (JVs), said CRISIL in its media release.

M&M’s business and financial risk profiles, as well as those of its ventures in the UV, CV, and farm equipment segments, have been combined by CRISIL Ratings.

At around 11.58 AM, Mahindra & Mahindra was trading at Rs1,325.40, up by 0.42%, against the previous close of Rs1,319.90 on NSE. The counter touched an intraday high and low of Rs1,337 and Rs1,311.60 respectively.

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