14 / Sep
CRISIL upgrades Redington ratings
CRISIL also expects that Redington India’s acquisition plans in the IT products distribution space over the short term will not result in any deterioration in the financial profile
CRISIL has upgraded its ratings on the long-term bank facilities of Redington (India) Ltd (Redington India) to ‘AA-/Stable’ from ‘A+/Stable’ and reaffirmed its rating on the short-term bank facilities and short debt programme at ‘P1+’.
CRISIL believes that Redington India will maintain its healthy business risk profile, supported by healthy medium-term prospects for IT products in the domestic and overseas markets. Redington India’s operating margin will improve because of the company’s increasing scale of operations. The company’s financial risk profile is expected to continue to improve steadily, driven by healthy cash accruals; its moderate capital expenditure (capex) is unlikely to adversely affect its financial risk profile.
The outlook may be revised to ‘Positive’ if Redington India significantly improves its debt protection metrics and maintains healthy liquidity on a steady-state basis. Conversely, the outlook may be revised to ‘Negative’ in case of a steep decline in the company’s performance, significant increase in funding support extended to Easyaccess, or large debt-funded acquisitions adversely affecting gearing and key debt protection metric.
Source:India Infoline News Service