ICRA revises ratings on Hindustan Aeronautics' credit facilities; Stock jumps 1.6%

14 Jan 2022 , 12:47 PM

Hindustan Aeronautics Limited has informed that ICRA has upgraded Long-term rating to [ICRA]AAA; outlook revised to Stable while short-term rating reaffirmed at [ICRA] A1+.

The upgrade in the long-term rating factors in the sustained improvement in Hindustan Aeronautics Limited’s (HAL) working capital position in H1FY2022 while maintaining healthy revenues and profitability. 

The Stable outlook on the [ICRA]AAA rating reflects ICRA’s opinion that HAL will continue to benefit from its strategic importance to the Indian defence forces, strong financial flexibility, high entry barriers and long track record of operations.

Hindustan Aeronautics was trading at Rs1,337.45 per piece up by Rs21.05 or 1.6% on Sensex, at around 12:46 PM.