CARE downgrades rating of Lanco Industries’ bank facilities

Credit rating agency, CARE has downgraded the rating of Lanco Industries’ long-term bank facilities worth Rs 476.69 crore to A from A+. The rating agency has also downgraded the rating of the company’s short term bank facilities worth Rs 320 crore to A1 from A1+.

The company has received the rating down-gradation due to deterioration in profitability and debt protection metrics coupled with elongated working capital cycle of the company in FY12.

Lanco Industries is engaged in the manufacturing of DI pipes, foundry and SG-grade pig iron and portland slag cement with DI pipes being the main product.