Credit rating agency, India Ratings & Research has affirmed WABCO India’s (WIL) long-term issuer rating at ‘AA+’ with stable outlook. The affirmation reflects the company’s continued strong presence in the air brakes business - catering to medium and heavy commercial vehicles (M&HCV) in India. The rating action also reflects the company’s consistently strong EBITDA margins and liquidity coupled with nil to very low use of cash credit limits and negative net debt position since FY11 (year-end March).
Wabco India is a fully-owned subsidiary of Belgium-based Wabco Holdings, after the parent acquired the TVS group’s stake in the Wabco-TVS joint venture in 2009. Even after the two parted ways, the company was allowed to use the ‘TVS’ name till 2011.
