Credit rating agency, CARE has reaffirmed BB rating to Rs 45.70 crore long term bank facilities of Gyscoal Alloys. The rating agency has also reaffirmed A4 rating to Rs 28 crore short term bank facilities of the company.
The ratings of the company continue to be constrained by the working-capital intensive nature of its operations, stressed liquidity position, susceptibility of operating margins to volatility in raw material prices and significant delay in the execution of its envisaged large-sized project for the expansion of its melting facility.
Gyscoal Alloys has an installed capacity of 18,000 Metric Tonnes per Annum (MTPA) each for melting and rolling division as on March 31, 2011. The plant has capacity to manufacture different grades of SS products ranging between 200 series to 400 series.
