ICRA reaffirms A1 to MBIL's Rs 5 crore CP programme

New Delhi, May 11 (UNI) Credit rating agency ICRA has reaffirmed the A1 rating, indicating highest-credit-quality in short term, to the Rs 5 crore Commercial Paper (CP) programme of Machino Basell India Ltd (MBIL).

The rating factors in MBIL's position as a leading supplier of polypropylene compounds (PP) and its technological strength by virtue of its association with its 50 per cent JV parent, Basell International.

The rating also takes into account MBIL's vulnerability to raw material price increases, its low pricing power with customers, its moderately stretched working capital cycle, relatively high gearing and its planned large capital investments during the next year.

The rating factors in the recent change in ownership of Basell International as it was acquired by Luxembourg-based Access Industries.

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