Credit rating agency, CARE has assigned ‘A-’ rating to Shyam Century Ferrous’ long-term Bank Facilities worth Rs 30 crore. The rating agency has also assigned ‘A2+’ rating to company’s Short-term Bank Facilities worth Rs 3 crore.
The ratings draw strength from the experienced promoters with established group, availability of captive power plant and comfortable leverage ratios. The ratings also factor the decline in capacity utilisation and moderation in profitability in FY15 (refers to the period April 1 to March 31). The ratings, however, are constrained by SCFL’s exposure to volatility in finished goods prices, exposure to group companies and working capital intensive nature of operations.
