CRISIL gives AA+ to Shree Cement’s NCDs

CRISIL gives AA+ to Shree Cement’s NCDs
Published: 22 July 2010

Indian credit rating agency CRISIL gave yesterday a rating of AA+ with a "stable" outlook to the INR2bn (USD42m/EUR33m) non-convertible debentures (NCDs) of local Shree Cement Ltd.
 
In addition, the agency kept at AA+ with a "stable" outlook the rating on the company’s INR3bn NCDs.
 
CRISIL believes that Shree’s debt protection metrics will remain strong over the medium-term, backed by its strong operating profitability and liquidity, and established market position. The agency may revise the outlook to "positive" if the company strengthens its market position after commissioning its new capacity and enhances its geographical diversity while sustaining the improvement in its capital structure. Conversely, it may revise it to "negative" if Shree undertakes large, debt-funded capex programmes, or faces profitability pressures because of more-than-expected decline in realisations.