Credit rating agency, CARE has revised ‘BBB’ rating to MSP Steel & Power’s Long term bank facilities worth Rs 888.0 crore which was reduced from Rs 956.9 crore from ‘BBB+’ and ‘A3+’ rating to Short term bank facilities worth Rs 43.0 crore from ‘A2’. The rating agency has also revised ‘A3+’ rating to company’s Commercial Paper worth Rs 20.0 crore from ‘A2’.
The revision in the ratings of MSPL takes into account the deterioration in the company’s credit risk profile as reflected by a decline in its profitability margins in FY13 & H1FY14 and weakening in debt coverage indicators.
MSP Steel & Power, the flagship company of the MSP group, is over a decade old business house belonging to Agrawal family of Kolkata. It is currently engaged in manufacturing of sponge iron, billets, TMT bars and structural’s besides having backward integration for washing of coal, pellets cum iron ore beneficiation and power. Besides, the company is also involved in trading of steel products.
