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-CARE keeps BBB rating on Galliant Metal.

BANKING AND CREDIT NEWS-October 20, 2011--CARE keeps BBB rating on Galliant Metal(C)2011 M2 COMMUNICATIONS

20 October 2011 - CARE confirmed yesterday its BBB rating on the INR1.138bn (USD23m/EUR17m) long-term bank facilities of Indian steel products maker Galliant Metal Ltd, or GML.

The agency also reiterated its A3+ rating on the company's INR850m short-term bank facilities.

The ratings are based on GML's established operations with dealers, its favourable capital structure and efficient working-capital management.

They are, however, constrained by the firm's unstable profit margins due to the volatile raw material prices, the increasing competition and the inherent cyclicality in the steel industry.

Future ratings on GML will consider its growth and profitability in a cyclical industry. The execution of any large-size projects in its non-core business would be also a key rating sensitivity.

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Publication:M2 Banking & Credit News (BCN)
Date:Oct 20, 2011
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