Credit rating agency, CRISIL has upgraded its rating on the long-term bank facilities of AIA Engineering to ‘AA+/Stable’ from ‘AA/Positive’. The rating agency has also reaffirmed the rating on the company’s short-term bank facilities at ‘A1+’. Further, CRISIL has withdrawn the rating on the company’s Rs 10 crore commercial paper programme at the company’s request; there is no outstanding against this programme.
The upgrade in long-term rating reflects the company’s improved business risk profile, supported by its strong market position in the mill parts and components segment, well diversified revenue profile (both in terms of end-user segments and geographic coverage), and expected contribution from the company’s on-going and planned capacity additions.
AIA Engineering is engaged in business of designing, developing, manufacturing, installing and servicing of high chromium wear, corrosion and abrasion resistant parts. These products are mainly used by cement, mining and thermal power generation industries.
