Credit rating agency, CRISIL has upgraded its rating on the long-term bank facilities of Sambandam Spinning Mills to ‘BB+/Stable’ from ‘BB/Stable’. The rating agency has also reaffirmed its rating on the short-term bank facilities at ‘A4+’.
The company has received the said rating up-gradation on the back of its improved financial risk profile, marked by improvement in capital structure and debt protection metrics, over the medium term; the company’s gearing improved to 3.04 times as on March 31, 2013, from 5.07 times as on March 31, 2012, driven by healthy cash accruals.
