Credit rating agency, Credit Analysis & Research (CARE) has revised rating of TVS Motor Company’s long term bank facilities worth Rs 90.80 crore to ‘AA’ from ‘AA-’. The rating agency has also revised rating of company’s Long term/ Short term bank facilities worth Rs 225 crore to ‘AA/A1+’ from ‘AA-/A1+’.
Meanwhile, the rating agency has also reaffirmed ‘A1+’ rating to the company’s short-term bank facilities worth Rs 295.14 crore. The revision in the long-term rating factors in the continuous improvement in financial position of TVS Motor Company for the past three years ended March 2014 supported by healthy cash accruals.
TVS Motor Company is the flagship of the $7 billion Indian conglomerate, TVS Group which recently celebrated one hundred years in the automotive business in India. The company had recorded 46% increase in total sales registering 2,27,482 units in the month of August 2014 against 1,55,532 units recorded in the month of August, 2013.
