Credit rating agency, CARE has revised rating of India Cements’ long term bank facilities worth Rs 2680.70 crore to ‘BBB+’ from ‘A-’. The rating agency has also revised rating of company’s short term bank facilities worth Rs 369.67 crore to ‘A2’ from ‘A2+’. The revision in the ratings of The India Cements (ICL) factors in the continuing reliance on refinancing during H1FY16 notwithstanding the improvement in financial performance during the same period.
The ratings continue to factor in the leadership position of ICL in the southern markets with established presence in all the four southern states and Maharashtra, it’s strong brand image and its presence in the western markets (through its subsidiary in the process of being merged with itself).
India Cements is the largest producer of cement in South India and one of the largest cement manufacturer in the country with a total installed cement manufacturing capacity of 14.05 mtpa (million tonnes per annum).
