ICRA reaffirms highest credit rating to Subros CP programme

New Delhi, Nov 16 (UNI) Credit rating agency ICRA has re-affirmed highest credit quality rating to the Rs 20 crore commercial paper programme of Subros Ltd.

The rating A1+ has been reaffirmed considering the company as an integrated vendor of air conditioners to the domestic automative industry and the position of the company.

Instruments rated in this category carry the lowest credit risk in the short term.

The company derives significant benefits from the technical assistance provided by its 13 per cent shareholder, automotive air conditioner manufacturer Denso Corporation, Japan (DNJP).

Over the last couple of years Subros has also invested on product development, testing and design capabilities, which together with its cost reduction initiatives has helped the company protect its market share in the face of competition.

The rating also factors in the increasingly competitive market scenario and pricing pressures from original equipment manufacturers (OEMs) in the industry.

Its product range includes compressors, evaporators, hoses and tubes, heaters, blower units, and condensers.

Currently, Subros operates from its manufacturing locations at Noida, Manesar and Pune.

For meeting after sales service requirements of their customers the company has also established an all India service network.

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