Credit rating agency, CARE has assigned ‘AA’ rating to Allcargo Logistics’ proposed Non-Convertible Debenture (NCD) issue worth Rs 150 crore. The rating agency has also assigned 'A1+' rating to company’s proposed Commercial Paper (CP) Issue worth Rs 75 crore.
The ratings of Allcargo Logistics (ALL) draw strength from the experienced management and established position of the company in the global less than container load (LCL) and domestic container freight station (CFS) businesses, healthy diversification of its revenue profile, strong international presence and comfortable financial risk profile and liquidity position.
These rating strengths are partially tempered by susceptibility of ALL’s operations to decline in EXIM trade volumes, intensifying competition in the CFS business and delay in capex cycle/ execution of projects impacting the performance of the P&E division.
Allcargo Logistics is an integrated logistics service provider and broadly operates in three segments - Multimodal Transport Operations (MTO), Container Freight Stations (CFS)/Inland Container Depot (ICD) and Project & Engineering solutions (P&E).