MoneyWorks4Me

CRISIL upgrades M&M's credit rating to stable

30 Nov 2010 Evaluate

Rating agency CRISIL upgraded the auto major Mahindra & Mahindra's credit facilities with banks to stable, on account of improvement of the company's financial profile. CRISIL has upgraded its rating on long-term bank facilities of Mahindra & Mahindra Ltd to 'AA+/Stable' from 'AA/Positive'. The ratings were revised up despite expected debt burden on the company for acquiring controlling stake in South Korea's Ssangyong Motor. An 'AA' long-term rating symbolises instruments offering a high degree of safety with regard to timely payment of financial obligations. CRISIL also retained the rating on the short-term facilities and commercial paper programme of M&M at 'P1+'  'P1+' indicates that repayment of these borrowings is quite safe.

M&M has Rs 50 crore long-term working capital demand loans, besides a combined Rs 1,000 crore of short-term commercial paper programme, short-term loan and bank guarantee and letter of credit.

The upgrade has been driven by significant improvement in M&M's financial risk profile, particularly capital structure after conversion of its convertible bonds to equity shares in October 2010. M&M's financial risk profile will remain healthy over the medium term despite its debt- -funded investment plans, including acquisition of South Korea's Ssangyong Motor Company.

Furthermore, M&M's operating performance, which improved significantly in 2009-10, remained strong in the first half of 2010-11. CRISIL believes that M&M's cash accruals will remain robust over the medium term, despite some decline in operating margins because of increase in raw material prices.

crackcrack

Mahindra & Mahindra Share Price

3477.00 -32.00 (-0.91%)
11-Aug-2026 16:59 View Price Chart
Peers

About MoneyWorks4Me

MoneyWorks4Me is a SEBI-registered Investment Adviser (IA) dedicated to helping investors build long-term wealth through transparent, research-driven, conflict-free guidance. Founded in 2008, we started our journey as a Research Analyst (RA), providing deep fundamental analysis, intrinsic value insights, and long-term investing frameworks for Indian equities. In 2017, we transitioned to a full-fledged SEBI-registered Investment Adviser, strengthening our commitment to acting as a fiduciary—always putting the investor’s interest first.

Our Vision

To become India’s most trusted, research-powered fiduciary advisory platform—where every investor, regardless of experience, can make calm, confident, and well-reasoned investment decisions.

What Makes MoneyWorks4Me Different

Our Approach: Ensuring compounding work its magic on client portfolio.

MoneyWorks4Me ensures this through: