Credit rating agency, CARE has revised ‘BBB-’ rating to Simplex Castings’ Long-term Bank Facilities (Term loans) worth Rs 92.38 crore which was enhanced from Rs 81.05 crore from BBB. The rating agency has also reaffirmed A3 rating to the company’s Short-term Bank Facilities worth Rs 75.00 crore.
The revision in the long term rating of SCL takes into account the deterioration in the financial performance of the company in FY13 and stretched working capital cycle. The ratings, however, continue to draw strength from long and satisfactory track record of the company, considerable experience of the promoters, diverse product portfolio catering to varied industries, reputed clientele and moderate leverage ratios.
Simplex Castings is engaged in manufacturing of engineering castings in various grades for core industrial sector like steel, power, railroad equipment, mining, cement, defence, sugar and other specialized areas in as cast, machined and in assembled condition.
