Credit rating agency CARE has revised rating of Amtek Auto’s long-term bank facilities worth Rs 7398.40 crore to ‘AA-’ from ‘AA’. The rating agency has also reaffirmed ‘A1+’ rating to the company’s short term bank facilities.
The revision in the long-term rating takes into account the decline in financial profile marked by drop in sales and profitability in Q2FY15 and risks related to aggressive pace of acquisitions made by the company in the recent past.
Amtek Auto manufactures components such as connecting rod assemblies, flywheel ring gears and assembly, steering knuckles, suspension and steering srms, CV joints, crankshaft assemblies and torque links. It is backed by in-house design and development facilities engaged in developing new product and processes.
