Credit rating agency, CARE has reaffirmed the assigned rating ‘CARE A+’ to the long-term bank facilities of Chettinad Cement Corporation (CCCL) for Rs 100.00 crore. The agency has also reaffirmed the assigned rating ‘PR1+’ to the short-term bank facilities of the company for Rs 270.00 crore.
The ratings take note of successful implementation of CCCL’s recent capacity augmentation programs, the risks associated with the company’s ongoing expansion plans (to be largely debt-funded) continues.
The ability of CCCL to successfully implement its capacity augmentation plans, improve the market share and sustain margins at reasonable levels in a scenario of surplus capacity and any further debt-funded capex will be key rating sensitivities.
Chettinad Cement Corporation incorporated in 1962 belongs to the Tamil Nadu-based Chettinad group; CCCL is engaged in the manufacture of cement since 1967. The Chettinad group has varied business interests across cement, engineering, logistics, transportation, education, hospitals and other sectors.