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India Ratings downgrades JK Tyre’s long-term issuer rating to ‘A+’

15 Nov 2017 Evaluate

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.

Peers
Company Name CMP
MRF 118678.55
Apollo Tyres 384.80
JK Tyres & Inds. 305.80
Ceat 3149.85
Balkrishna Inds. 2101.35
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