Credit rating agency, ICRA has revised the rating outstanding on the Rs 128.21 crore term loan facilities and the Rs 69.50 crore fund based facilities of Dynamatic Technologies from LBBB+ to LBBB. The rating agency has also revised the rating outstanding on the Rs 71.50 crore non-fund based facilities of the company from A2 to A3+. The outlook on the long-term rating is stable.
The revision in ratings reflect the sharp rise in debt levels and the consequent increase in gearing, following the company’s recent acquisition of a German automotive component manufacturer, Eisenwerke Erla GmbH.
Dynamatic Technologies is engaged in the activity of manufacturing hydraulic gear pumps. It is also engaged in manufacturing a variety of advanced hydraulic valves, hydraulic pumping units, custom-made hydraulic solutions, marine power packs, turnkey industrial instrumentation, and complicated aircraft ground-support systems.