Icra upgrades Tata Metalliks debenture issue

New Delhi, Aug 24: CREDIT rating agency, ICRA has upgraded the Rs 19.74 crore debenture issue of Tata Metalliks Ltd (TML) to ‘LBBB+’ from ‘LBBB’ indicating moderate safety after considering the improved market position of TML and its lower financial risk profile on account of debt repayment and efficient working capital management.

Icra said the company’s improved financial risk profile along with relative improvement in its market position would positively impact its debt servicing ability in the long run.

The credit rating agency, however, said it was concerned on sustainability of higher realisations on sale of pig iron, especially in view of slowdown in the global economy and the possibility of an imbalance in the domestic demand-supply scenario.

Icra, meanwhile, retained the highest safety rating of ‘A1+’ to the Rs 5-crore short-term debt programme of Unichem Laboratories Ltd (ULL) factoring its enhanced therapeutic coverage, consistently above-average operating performance and strong financial position.

It said strong cash accruals, limited capital expenditure and significant level of unutilised working capital facilities had lent adequate financial flexibility to the company.

Icra also retained the high safety rating of ‘LAA-’ to the Rs 10-crore Non Convertible Debenture programme of India Glycols Ltd (IGL) citing that the company had the lowest cost.

(PTI).