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CARE assigns ‘CARE BBB-‘ rating to the long-term bank facilities of Ucal Fuel Systems

24 Jun 2011 Evaluate

Credit rating agency, CARE has assigned ‘CARE BBB-‘ rating to the long-term bank facilities of Ucal Fuel Systems for Rs 250.34 crore. The rating also takes into account the turnaround in performance of the loss making subsidiary, Amtec Precision Components (Amtec) and improvement in Ucal’s financial performance during FY10 and 9MFY11.

Ability of the company to maintain or gain market share in the wake of intense competition in the industry, overcome technology challenges successfully and sustain the profitable operations of US subsidiary were the key rating sensitivities.

Ucal Fuel Systems Limited (Ucal) was established as a Joint Venture between Chennai based Carburetors and Mikuni Corporation of Japan. The company is in the business of providing holistic solutions in fuel management systems and is committed to producing products of consistent quality and timely delivery. Ucal is an OEM supplier to major automobile manufacturers like Maruti Suzuki, Hyundai, Hero Honda, TVS Motor, Bajaj Auto and Yamaha.

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