Indian Rating and Research, the rating arm of Fitch Ratings group has upgraded the investment rating grade of Jain Irrigation Systems to ‘BBB-’ from ‘BB+’ for long-term and to ‘A3’ from ‘A4+’ for short-term.
Following the improvement in liquidity profile caused by better receivables management and stabilization of change of business model in MIS business implemented by the company as reflected in its recently announced Q2/H1 FY 2014 results on November 10, 2013, the rating agency has upgraded the company’s outlook to ‘stable’ from earlier ‘negative outlook’.
The ratings upgrade will enable the company to bring its overall cost of debt down in the remaining months in the 2nd Half of FY2014 and also enable it to further improve its short/ medium term working capital management initiatives. The rating agency also expects the company to continue to work on its focus on high quality business and sustainable revenues and a primarily cash based business model.
Company Name | CMP |
---|---|
Supreme Industries | 4975.80 |
Astral | 2073.60 |
Finolex Inds | 270.90 |
EPL | 181.00 |
Jain Irrigation Sys | 66.60 |
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