Credit rating agency, CARE has revised rating of Fedders Lloyd Corporation’s long term bank facilities worth Rs 568.17 crore to ‘BBB+’ from ‘A-’. The rating agency has also revised rating of company’s short term bank facilities worth Rs 885 crore to ‘A3+’ from ‘A2’.
The revision in the ratings of Fedders Lloyd Corporation (FLCL) takes into account the deterioration in its financial profile marked by declining profitability, elongated receivables as well as decrease in its order book position. The revision in the ratings also factors in the World Bank notification regarding FLCL and related entities’ ineligibility to participate in the World Bank financed projects for a period of 4 years (April 6, 2016 to April 5, 2020).
FLCL provides customized solutions on a turnkey basis in the areas of infrastructure, involving manufacturing, engineering, designing of Steel Structures, Engineering and Procurement & Construction (EPC) for transmission of power, manufacture and supply of towers for wind turbines, and environment control systems for industrial and customized applications.
