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-CARE sets BB rating to Mukti Credits loans.

BANKING AND CREDIT NEWS-November 28, 2011--CARE sets BB rating to Mukti Credits loans(C)2011 M2 COMMUNICATIONS

28 November 2011 - CARE today gave a BB rating to the INR150m (USD2.9m/EUR2.2m) long-term bank facilities of Indian metal and non-metal composites supplier Mukti Credits Pvt Ltd, part of textile company Sangam (India) Limited (BOM:514234).

The experience of the company's promoters and the implicit support from the Sangam group favourably influence the ratings.

However, the lack of operational experience of Mukti Credits, risks related to large size dismantling and disposal projects under execution and the company's opportunity-based business model are constraints to the ratings. The company's limited value addition, vulnerability of its margins to volatility in scrap prices and high working-capital intensity are weakening the ratings as well.

Future rating actions depend on the company's ability to complete the dismantling projects on time and profitably dispose of the scrap.

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Publication:M2 Banking & Credit News (BCN)
Date:Nov 28, 2011
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