Credit rating agency, CARE has reaffirmed ‘BB+’ rating to Rajratan Global Wire’s long term bank facilities worth Rs 25.47 crore which was enhanced from Rs 9.81 crore and ‘A4+’ rating to company’s Short term Bank Facilities worth Rs 34 crore. Besides, the rating agency has also reaffirmed ‘BB+/A4+’ ratings to the long term/short term bank Facilities of the company for amount worth Rs 53.25 crore which was enhanced from Rs 50.25 crore.
The company has received the said ratings on the back of its propensity to support the operations of its subsidiary in Thailand, Rajratan Thai Wire (RTWL), whose performance has remained subdued and the bank facilities of which are guaranteed by RGWL. The ratings are further constrained on account of its high leverage and modest debt coverage indicators on a consolidated level along with its close linkages to the cyclical automobile industry.
Rajratan Global Wire (RGWL) is engaged in manufacturing of Tyre Bead Wire (TBW). TBW is a high carbon bronze coated steel wire used in all types of tyres; TBW is the crucial link through which the vehicle load is transferred from rim to the tyre. RGWL also manufactures Pre stressed concrete wires and strands which find application in construction of bridges, silos, buildings, etc.
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