Ind Ra upgrades credit ratings on NCC's bank facilities; Stock up 3%

14 Dec 2022 , 11:52 AM

India Ratings and Research (Ind-Ra) has upgraded NCC Limited’s Long-Term Issuer Rating to ‘IND A+’ from ‘IND A’. The Outlook is Stable.

According to the rating rationale report, Ind-Ra continues to rate NCC on a standalone basis after factoring in the support extended by the company to its subsidiaries to arrive at the ratings.

Further, the upgrade reflects Ind-Ra’s expectation that NCC’s interest coverage (operating EBITDA/finance cost) will remain above 2.5x in FY23 and FY24, if the improvement in EBITDA and gross working capital cycle demonstrated in its IHFY23 results continues, the rating agency said.

At around 11:56 AM, NCC Ltd is currently trading at Rs93 per share up by Rs2.8 or 3.1% from its previous closing of Rs90.20 per share on the BSE.

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