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CRISIL gives B+ to Bhawani Ferrous' bank facilities.

BANKING AND CREDIT NEWS-1 February 2010-CRISIL gives B+ to Bhawani Ferrous' bank facilities(C)1994-2010 M2 COMMUNICATIONS

1 February 2010 - Indian credit rating agency gave B+ with a "stable" outlook to the cash credit and the term loan of local bars and steel ingots maker Bhawani Ferrous Pvt Ltd.

The rating reflects the company's weak financial risk profile and exposure to risks relating to cyclicality in the steel industry. These weaknesses are partially offset by its established business presence in steel long products and marketing arrangement with local industrial machinery maker Kamdhenu Ispat Ltd (BOM:532741).

CRISIL expects Bhawani Ferrous' operating margins to remain vulnerable to the cyclicality in the steel industry. The agency may revise the outlook to "positive" if the company generates revenue and profitability beyond the expected levels. Or, it may revise it to "negative" if the company undertakes aggressive debt-funded capex plans, or if its revenue and profitability is significantly lower than the expected levels leading to deterioration in its financial risk profile.

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Publication:M2 Banking & Credit News (BCN)
Date:Feb 1, 2010
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