CARE revises rating of Moser Baer India’s bank facilities

Credit rating agency, CARE has revised Rs 1150.71 crore long term bank facilities of Moser Bare India to ‘BB+’ from ‘BBB-’. The rating agency has also revised Rs 423.25 crore short term bank facilities of the company to ‘PR4+’ from ‘PR3’.

The revision in the company’s ratings takes into account its weakened financial profile marked by continuing losses in FY10 and 9MFY11 and high overall gearing on a consolidated basis. Further, the ratings are also constrained due to pricing pressure in optical media, risk of volatility in raw material prices, technology risk and substantial exposure to subsidiaries which are loss making.

The company has reported a loss of Rs 131.20 crore as compared to the net profit of Rs 6.30 crore for the corresponding quarter previous year. Its net sales/income from operations has decreased 21.23% at Rs 458.95 crore for the quarter under review from Rs 582.64 crore in the corresponding previous quarter.