ICRA retains A1+ rating to EML's Rs 60 cr debt prog

New Delhi, Apr 18 (UNI) Credit rating agency ICRA has retained the A1+ rating assigned to the Rs 60 crore short term debt programme of Eicher Motors Limited (EML) indicating highest credit quality rating.

The rating takes into account EML's stable position in the domestic commercial vehicle (CV) business, and the favourable impact of the sale of the tractor business on the financial profile.

EML's strong financial profile characterised by a low gearing and large liquid investments enable the company to fund its growth plans while maintaining its financial profile.

The rating also takes into account the inherent cyclicality in the domestic CV industry, the moderate market position that the company has in the CV segment, the weak profitability and narrow target segment of its two wheeler division and the impact on profitability from intensifying competition and rising input costs in its core CV business.

UNI SS RA RS1640