Credit rating agency, India Ratings and Research has downgraded JK Tyre & Industries’ long-term issuer rating to ‘A+’ from ‘AA-’, while maintaining a negative outlook. The ratings agency may further downgrade it if the company does not substantially improve its credit profile over the next six months.
The downgrade reflects the higher-than-expected deterioration in the consolidated credit profile in 2016-17 (April-March) on account of a lower-than-expected ramp-up of operations at JK Tyre and Cavendish Industries.
JK Tyre & Industries is a one of the leading tyre manufacturers in India and amongst the top 25 manufacturers in the world with a wide range of products catering to diverse business segments that includes Truck/Bus, LCV (Light commercial vehicles), Passenger Cars, MUV (Multi utility vehicles) and Tractors.