Cords Cable’s Credit Rating for Long-Term Bank Facilities Upgraded to BBB, Stable
Rating agency CARE has reviewed Cords Cable Industries’ credit rating for bank facilities. The company’s credit rating for long term bank facilities has been improved to ‘BBB, Stable’ from previous year’s ‘BBB-, Stable’. Cords Cable’s credit rating for short term bank facilities has been reaffirmed as ‘A3’.
In the detailed Rating Rationale CARE in its Press Release wrote “The revision in ratings takes into account consistent improvement in financial risk profile of the company marked by increase in total operating income, stable margins and improvement in gearing levels coupled with strong demand drivers for control & instrumentation cables. The ratings further takes into cognizance the experienced promoter, established position in the control and instrumentation cables segment, diversified and reputed clientele base with focus on niche sectors.”
The key weaknesses for Cords Cable as identified by CARE are: working capital intensive nature of operations, Susceptibility of margins to volatility in raw material prices and competitive nature of the Indian Cable Industry.
About Cords Cable Industries Ltd.: Cords Cable is an Indian manufacturer of Instrumentation, Signaling, other Specialty cables, Control and LV Power cables. Cords is among the market leaders for Instrumentation, Specialty cables and Control cables in India and among the best Worldwide. The company was incorporated in 1991, but the Cords brand has been manufacturing Special cables since over 30 years.