CRISIL revises 'A/Stable' rating on PPAP Automotive's long-term credit facilities

13 Apr 2022 , 12:04 PM

CRISIL Ratings has revised its rating on the long-term bank facilities of PPAP Automotive Ltd to ‘CRISIL A/Stable’ from ‘CRISIL A+/Stable, while reaffirming its ‘CRISIL A1’ rating on the short-term bank facilities of the entity.

According to the rationale report, the revision reflects a belief that the business risk profile of the PPAP group may continue to weaken. 

The ratings continue to reflect PPAP’s leadership position in the polyvinyl chloride (PVC)/thermo plastic olefins (TPO) auto components industry, along with strong relationships with large original equipment manufacturers (OEMs), and robust financial risk profile.

These strengths are partially offset by customer concentration in revenue and the exposure to volatility in raw material prices and foreign exchange (forex) rates.

CRISIL Ratings has combined the business and financial risk profiles of PPAP and its wholly owned subsidiaries.

At around 12:06 PM, PPAP Automotive was trading at Rs211.05 apiece down by Rs0.2 or 0.09% on Sensex.