Credit rating agency, CARE has revised rating of KEI Industries’ (KEI) long-term bank facilities worth Rs 530.44 crore from BBB+ to A- and short-term bank facilities worth Rs 890 crore from A3+ to A2+. Further, the rating agency has revised rating of company’s commercial paper worth Rs 30 crore from A3+ to A2+.
The rating agency has also revised rating of company’s fixed deposits worth Rs 5 crore to A- (FD) from BBB+ (FD). The revision in the ratings of KEI Industries factor in the improved operational performance in FY16 (refers to the period April 01 to March 31) leading to improved profitability and liquidity profile.
The ratings continue to derive strength from experience of the promoters and their demonstrated financial support, KEI’s long track record of operations, established market position in the cable industry, healthy order-book position, strong dealership network, its diversified and reputed clientele and wide range of products. Furthermore, the ratings also factor in KEI’s growing contribution from the EHV segment which is aligned with government’s focus on strengthening power transmission sector, besides growth witnessed in EPC and retail/distribution segment.
KEI Industries is a cable manufacturing company. It offers high and low tension cables, control and instrumentation cables, house wires and stainless steel wires, and high-technology specialty cables.