ICRA reaffirms rating on International Combustion (India) credit facilities

21 Jan 2022 , 09:28 AM

ICRA Limited has reaffirmed the long-term rating of ICRA BB+ (signifying a moderate risk of default regarding timely servicing of financial obligations) on the fund-based and non-fund-based working capital credit facilities enjoyed by International Combustion (India) Limited from its bankers on a consortium basis. The outlook on the long-term rating has been revised from Negative to Stable.

ICRA has also reaffirmed the short-term rating of ICRA A4+ (signifying a minimal degree of safety regarding timely servicing of financial obligations and carrying very high credit risk and susceptibility to default) on the aforementioned facilities.

“ICRA has reaffirmed the ratings and upgraded the outlook thereon primarily considering the company’s much-improved financial performance in H1FY22 vis-a-vis FY21 and the ICRA’s expectation that the trend is likely to sustain/ continue going forward based on a healthy order book position along with a favourable demand outlook providing revenue visibility.

The Stable outlook on the ICRA BB+ rating reflects ICRA’s opinion that the Company’s financial performance is likely to improve going forward, backed by the strong demand prospects of the user industries,” company shared ICRA’s rating rationale.

International Combustion (India) Ltd was yet to trade on Friday. Its stock ended at Rs321.35 down by Rs6.65 or 2.03% on the BSE, on Thursday.