Credit rating agency, CARE has assigned ‘CARE BBB+’ rating to the long-term bank facilities of MBL Infrastructure for Rs 165.50 crore. The agency has also assigned ‘CARE BBB+/PR2+’ rating to the long-term/short-term bank facilities of the company for Rs 320.00 crore.
The rating is however constrained by concentrated order-book, working capital intensive operations and increasing exposure to BOT road projects. Going forward, MBL’s ability to execute the projects without time and cost-overruns, maintaining optimal capital structure and manage the working capital requirements efficiently shall be the key rating sensitivities.
MBL Infrastructures is engaged in the construction and maintenance of roads and highways, industrial infrastructure projects and other civil engineering projects for various government bodies and other clients. MBL has a fast growing business that provides integrated engineering, procurement and construction services for civil construction and infrastructure sector projects. The company has a pan India presence.