Mahindra & Mahindra's 2 bln rupees CP programme rated 'P1+' - Crisil |
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Thu, 25 Oct 2007 07:05
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MUMBAI (Thomson Financial) - Indian rating agency Crisil said it has assigned a 'P1+' rating to Mahindra & Mahindra Ltd's 2 bln rupees commercial paper programme and reaffirmed the 'AA+' rating with a negative outlook for the auto maker's 55 mln rupees non-convertible debentures.Crisil said the rating reflects the company's leadership position in the tractor segment and strong presence in the utility vehicle (UV) segment driven by diversified product portfolio, and strong operating efficiency leading to cost competitiveness.The rating also factors in the impact of increasing investments on the company's financial profile, and its exposure to cyclicality in the tractor industry.Crisil, a division of Standard & Poor's, said the company's large debt-funded capital expenditure and acquisitions will strain its financial risk profile. Also, the company's credit risk profile will remain susceptible to the volatility inherent to the tractor industry, Crisil said.TFN.newsdesk@thomson.comans/manCOPYRIGHTCopyright Thomson Financial News Limited 2007. All rights reserved.The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.
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