ICRA Reaffirms Ratings for ACR Machining Private Limited with Stable Outlook

Strategic Insights -

ACR Machining Private Limited, a private company involved in machining activities, has received reaffirmation of its credit ratings from ICRA. The long-term rating of [ICRA]BBB (Structured Obligation) for the company's Rs. 4.0 crore long-term fund-based cash credit facility has been reaffirmed, along with a stable outlook. The short-term rating of [ICRA]A3+ (Structured Obligation) for the company's Rs. 0.50 crore short-term non-fund-based facilities has also been reaffirmed.

Key Takeaways:

  • ICRA has reaffirmed the long-term rating of [ICRA]BBB (Structured Obligation) for ACR Machining Private Limited's Rs. 4.0 crore long-term fund-based cash credit facility with a stable outlook.
  • The ratings were earlier placed on rating watch with developing implications following the withdrawal of corporate guarantee from Caspro Metal Industries Private Limited.
  • Caspro has again provided corporate guarantee towards ACR's bank facilities, removing the rating from watch and assigning a stable outlook to the long-term rating.
  • The ratings address the servicing of the loan as per the terms of the underlying loan and the guarantee arrangement, assuming that the guarantee will be duly invoked in case of a default.
  • The guarantee covers the principal and interest payment obligations on the rated debt.
  • ACR Machining Private Limited is promoted by directors of Caspro, with Mr. Mahendra Rathod, Mr. Prakash Rathod, and Mr. Vijay Rathod managing the company.
  • The company's manufacturing facility is located at Kolhapur, Maharashtra.

Statistics:

  • Rs. 4.0 crore: The amount of the long-term fund-based cash credit facility for which the rating has been reaffirmed.
  • Rs. 2.39 crore: The amount of the unallocated facility that was withdrawn by the company at its request.
  • Rs. 0.50 crore: The amount of the short-term non-fund-based facilities for which the rating has been reaffirmed.
  • [ICRA]A3+(SO): The short-term rating assigned by ICRA for the company's short-term non-fund-based facilities.
  • [ICRA]BBB(SO): The long-term rating assigned by ICRA for the company's long-term fund-based cash credit facility.

Sources:

  • ICRA Limited. (May 2015). ACR Machining Private Limited - Amount Rating Action. Retrieved from http://www.icra.in/ (exact webpage unavailable due to formatting restrictions)