Fitch assigns Cheema Boilers, loans BBB(ind)

Fitch Ratings said it assigned Cheema Boilers Ltd. a national long-term rating of BBB(ind), along with a BBB(ind) on its outstanding Rs. 57.36 million long-term bank loan, BBB(ind)/F3(ind) rating on its Rs. 258 million fund-based facility and F3(ind) rating on its Rs. 347.5 million non-fund based facility.

The outlook is stable.

The ratings take into consideration its established business of manufacturing steam boilers, pollution control equipment, fluidised bed conversion and energy saving devices, Fitch said.

The company's top management has more than two decades of experience in the field, the agency said.

Rating constraints arise on account of the relative small scale of the company's operations and the stressed working capital cycle, particularly the high inventory level, the agency said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.