Credit rating agency, CARE has revised the assigned ‘CARE BB+’ rating to ‘CARE BBB-‘ to the long-term bank facilities of Madhav Marbles & Granites (MMGL) for Rs 21.93 crore. The agency has also revised the assigned ‘CARE BB+/PR4+’ rating to ‘CARE BBB-/PR3’ to the long/short-term bank facilities of MMGL for Rs 2.21 crore.
Further, the agency has also revised the assigned ‘PR4+’ rating to ‘PR3’ to the short-term bank facilities of MMGL for Rs 7.84 crore.
Growth in its total income and profitability while maintaining of prevailing capital structure shall remain key rating sensitivities. The ratings are constrained by lack of own mines, exposure in the real estate activities, foreign exchange fluctuation risk and fragmented nature of granite industry.
Madhav Marble and Granite is a leading processor and exporter of premium quality granite and marble. MMGL is engaged in the production of slab and tiles from granites and marbles blocks and has two windmills. MMGL has suspended operations of its marble division during June’2010 and has increased its focus on the granite processing.