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CRISIL keeps ratings of MTAR.

BANKING AND CREDIT NEWS-29 April 2010-CRISIL keeps ratings of MTAR(C)1994-2010 M2 COMMUNICATIONS

29 April 2010 - Indian credit rating agency CRISIL kept yesterday at A+ with a "stable" outlook and at P1 the ratings on various bank facilities of local precision engineering company MTAR Technologies Pvt Ltd.

In addition, the agency withdrew the rating of A+ with a "stable" outlook on the company's INR45.6m (USD1m/EUR774,000) term loan as MTAR has prepaid the facility.

The ratings continue to reflect MTAR's conservative capital structure, healthy debt protection indicators, established relationships with clients and operational efficiency. These rating strengths are partially offset by its client concentration in revenue profile, tender-based nature of business and large working capital requirements.

CRISIL believes that MTAR will maintain its market position on the back of its strong relationships with clients and will benefit from the large proposed investments in nuclear and defence sectors by the government of India, over the medium-term. The agency may revise the outlook to "positive" if the company significantly increases its revenues and profitability while maintaining its capital structure. Conversely, it may revise it to "negative" if the company undertakes large, debt-funded capital expenditure (capex) programme or is faced with steep decline in operating margin.

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Publication:M2 Banking & Credit News (BCN)
Date:Apr 29, 2010
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