CRISIL reaffirmed its ratings on the debt programmes and bank facilities of M&M


                           
CRISIL reaffirmed its ratings on the debt programmes and bank facilities of M&M

CRISIL Limited has reaffirmed its 'CRISIL AAA/ Stable/ and CRISIL A1+' ratings on the debt programmes and Bank facilities of Mahindra and Mahindra and the Commercial Paper Rated Amount has been enhanced to Rs1,000cr.

The ratings continue to reflect M&M's leadership in the Indian tractor industry and healthy market position in light commercial vehicles (LCVs). The ratings also factor in a strong financial risk profile, supported by a robust balance sheet with low leverage and high financial flexibility. These strengths are partially offset by exposure to cyclicality inherent in the farm equipment (tractor) and automotive (auto) segments, exposure to risks pertaining to acquisitions and investments in subsidiaries/joint ventures (JVs), and decline in market share in the utility vehicle (UV) space over the last few years.

The stock closed at Rs385.05 up by Rs58.5 or 17.91% from its previous closing of Rs326.55 on the BSE.

The outbreak of the Novel Coronavirus (Covid-19) is expected to affect each of the major segments over the near term ' both in terms of disruption of the supply chain, and/or end-demand. Nevertheless, M&M's strong capital structure and liquidity position, along with the benefit of diversification of its business profile supports its credit profile.




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