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-ICRA sets Standard Galva Steels' ratings at BBB/A3.

BANKING AND CREDIT NEWS-October 4, 2011--ICRA sets Standard Galva Steels' ratings at BBB/A3(C)2011 M2 COMMUNICATIONS http://www.m2.com

4 October 2011 - ICRA gave today a BBB rating with a "stable" outlook to the INR30m (USD607,000/EUR460,000) long-term fund-based bank facilities of Indian steel trading firm Standard Galva Steels Private Limited (SGSPL) and an A3 rating to its INR1bn short-term non-fund-based bank facilities.

The ratings reflect the experience of the company's promoters, as well as its relations with renowned steel mills, wide product range, low client concentration risk, comfortable capital structure, sound coverage indicators and return on capital.

The ratings are, however, constrained by the highly fragmented nature of the steel trading business, its low capacity utilisation and the high margin pressure for conduits exports, as well as the exposure to price risks due to the cyclicality of the industry.

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Publication:M2 Banking & Credit News (BCN)
Date:Oct 4, 2011
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