Credit rating agency, CARE has revised rating of Shivam Autotech’s long-term bank facilities worth Rs 402.50 crore to ‘BBB+ (Negative outlook)’ from ‘A-’. The rating agency has also revised rating of company’s short term bank facilities worth Rs 66 crore to ‘A2+’ from ‘A1’.
The revision in ratings assigned to the bank facilities of Shivam Autotech (SAL) factors in the moderation in the financial profile during H1FY17 in terms of profitability and debt coverage indicators due to delay in the stabilization of its green-field plants in Bengaluru (Karnataka) and Rohtak (Haryana). The ratings are further constrained by revenue concentration risk and debt-funded capex in recent past impacting its overall gearing as on March 31, 2016.
The ratings continue to derive strength from the experienced and resourceful promoters, favourable location of its plants, strong operational linkages and long-standing relationship with its major customer.
