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Wednesday, March 23, 2011

revises the ratings assigned to Simplex Projects’ bank facilities


Credit rating agency CARE, has revised the ratings assigned to Simplex Projects’ long-term bank facilities from ‘CARE A-‘to ‘CARE A’.  The amount is also enhanced from Rs 1,151.00 crore to Rs 2,130.00 crore. It has reaffirmed the ‘PR1’ ratings assigned for short-term bank facilities of the company. The amount is been enhanced from Rs 35.00 crore to Rs 300.00 crore.
The agency has also revised the long/short- term bank facilities from ‘CARE A-/PR1’ to ‘CARE A/PR1’ for Rs 145.00 crore. Further, the agency has reaffirmed the ‘PR1’ rating assigned for the company’s Short Term Debt (including CP) for Rs 70.00 crore.
The revision in the long term rating takes into account the healthy order book position, high growth in revenue, profit level and cash accruals in FY10 as well as comfortable debt-equity ratio and interest coverage ratio and improved average collection period during the aforesaid period.

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