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CRISIL downgrades rating of CMI FPE’s long-term bank facilities to ‘A’

19 Jun 2013 Evaluate

Credit rating agency, CRISIL has downgraded rating on the long-term bank facilities of CMI FPE to ‘A/Stable’ from ‘A+/Stable’. The rating agency has though reaffirmed its rating on the company’s short-term bank facilities at ‘A1’.

The company has received the rating downgrades on account of its low profitability and increasing debt levels. The company’s profitability has declined in the past two years, as reflected in the decline in the company’s operating margin to negative levels (-0.4 per cent) in 2012-13 from around 15.7 per cent in 2010-11, thereby adversely impacting its accruals.

CMI-FPE principal activities comprise of manufacturing and installation of cold rolling mills complexes, processing lines, chemical processes, thermal processes and automation equipments for ferrous and non-ferrous industries worldwide.

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