ICRA assigns A1+ to Rs 40cr CPP of Everest Industries

New Delhi, Sep 12 (UNI) Credit rating agency ICRA today reaffirmed A1+ rating assigned to Commercial Paper Programme (CPP) of Everest Industries Ltd (EIL) for an enhanced amount of Rs 40 crore.

The rating, indicating highest credit quality in the short term, takes into account the established position of EIL in the domestic fibre cement industry.

The company's liquidity, cash position and undrawn bank limits support the short-term rating.

The rating also takes into consideration the company's capacity expansion plans and the consequent increase in borrowings, the inherent cyclicality and price volatility due to periodic demand supply imbalances, pricing pressures due to a largely price sensitive rural market and the potential risk of substitution by other roofing materials.

EIL, with a capacity of 0.455 million metric tonnes per annum (mtpa) as on March 2006, is engaged in manufacturing and marketing of asbestos cement (AC) roofing sheets, non-asbestos cement roofing sheets and flat products (boards).

UNI KR PV KN1724