ICRA retains A1+ assigned to Rs 25 crore CPP of EIL

New Delhi, May 24 (UNI) Credit rating agency ICRA toady retained the A1+ rating assigned to the Rs 25 crore Commercial Paper Programme (CPP) of Everest Industries Ltd (EIL), indicating highest credit quality in short term.

The rating takes into account the established position of EIL in the domestic fibre cement industry backed by its brand and distribution capabilities, the geographical spread of its plants enabling better reach and its financial risk profile reflected in its low debt levels and strong coverage indicators.

EIL's liquidity, cash position and undrawn bank limits support the rating. It also takes into consideration EIL's expansion plans and the consequent increase in borrowings, the inherent cyclicality and price volatility due to periodic demand supply imbalances.

The pricing pressures due to a largely price sensitive rural market and the potential risk of substitution to other roofing materials also account for the rating.

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