Ind-Ra upgrades long-term issuer rating of Panchmahal Steel to ‘IND BBB'

5 Aug 2022 , 11:59 AM

Panchmahal Steel Limited informed that India Ratings and Research (Ind-Ra) has upgraded the Long-Term Issuer Rating to ‘IND BBB’ from ‘IND BBB-’.

Ind-Ra has given an ‘IND BBB/IND A3+’ rating to the company’s Fund-based working capital limit worth Rs55 crore. The outlook has been kept as ‘Stable’.

Ind-Ra has upgraded the rating to ‘IND A3+’, assigned to the company’s non-fund-based working capital limit worth Rs92 crore.

Further, it has assigned ‘IND BBB/Stable/IND A3+’ to the proposed fund-based working capital limit worth Rs35 crore. Further, it assigned ‘IND A3+’ rating to the Proposed non-fund-based working capital limit worth Rs40 crore.

Rating assigned to term loan worth Rs2.44 crore stands withdrawn.

Ind-Ra stated in its rating rationale that the upgradation is on account of a substantial improvement in PSL’s FY22 financial performance, leading to an improvement in the credit metrics and liquidity profile of the company over the near-to-medium term.

At around 12.03 PM, Panchmahal Steel was trading at Rs137.50, down by 1.47% from its previous closing of Rs139.55 on the BSE. The scrip touched intraday high and low of Rs143.95 and Rs136 respectively.