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-CRISIL reiterates rating on TAFE Access.

BANKING AND CREDIT NEWS-November 21, 2011--CRISIL reiterates rating on TAFE Access(C)2011 M2 COMMUNICATIONS http://www.m2.com

21 November 2011 - CRISIL on Friday retained its A+ rating with a "stable" outlook on the INR150m (USD2.9m/EUR2.1m) cash credit, interchangeable with the working capital demand loan of Indian car dealer TAFE Access Ltd.

In addition, the agency confirmed its A1+ rating on the company's INR150m short-term debt.

The rater underlines the robust ties the firm has with its parent, Tractors and Farm Equipment Ltd, and the Amalgamations group. The ratings are also underpinned by TAFE's growing revenues and an adequate financial risk profile.

However, the low profitability of the group due to the large competition in the segment weighs on the ratings, CRISIL said.

If the firm improves significantly its business performance, the agency could upgrade its outlook to "positive". On the other hand, any sharp decrease in profitability or if TAFE undertakes a larger-than-expected debt-funded capex plan could reduce the outlook to "negative".

((Comments on this story may be sent to info@m2.com)).END.PUB430>PDNovember 21, 2011>JNBANKING AND CREDIT NEWS.PRICEDATENOT APPLICABLE.DAY

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Publication:M2 Banking & Credit News (BCN)
Date:Nov 21, 2011
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