Credit rating agency, CARE has reaffirmed ‘BB+’ rating to Tirupati Sarjan’s long-term bank facilities worth Rs 10 crore. The rating agency has also reaffirmed ‘BB+/ A4’ rating to company’s Long/Short term Bank Facilities worth Rs 4.25 crore. The ratings assigned to the bank facilities of Tirupati Sarjan (TSL) continue to remain constrained on account of its growing albeit modest scale of operations, geographically concentrated business with high working capital intensity and with recourse nature of debt in its Uganda-based subsidiary.
The ratings also continue to remain constrained on account of TSL’s presence in intensely competitive construction and real estate industries. The ratings continue to favorably factor in TSL’s promoters’ experience in real estate business and established presence in construction industry.
