Credit rating agency, CARE has assigned ‘CARE AA-‘ rating to the long-term bank facilities of Ahmednagar Forgings for Rs 684.25 crore. The agency has also assigned ‘CARE A1+’ rating to short-term bank facilities of the company for Rs 62.00 crore.
Further, the agency has also assigned ‘CARE A1+’ rating to the Commercial Paper (carved out of working capital limits) of the company for Rs 200.00 crore.
The company’s ability to improve its capacity utilization, continue to effectively manage working capital cycle, reduce dependence on the cyclical automobile sector and maintain profitability are the key rating sensitivities.
Ahmednagar Forgings is engaged in manufacturing of high precision Closed Die Steel Forgings and Auto Components and is a leading forging company in India. The company is a widely held company with primary ownership held by Amtek Auto (AAL), a premier automotive component manufacturing company.
