Indian rating agency ICRA has reaffirmed its rating for India’s Metals and Ferro Alloys Limited (IMFA) at “ICRA AA-” with a ‘stable’ outlook on long-term facilities, a company statement said on Tuesday, September 10.
The agency has also reaffirmed the company’s short-term rating at [ICRA] A1+.
ICRA stated that the reaffirmation of the ratings factors in the healthy financial performance of IMFA in 2023-24 and the expected sustaining of the same over the near term, leading to a healthy profitability, net cash accruals and debt coverage indicators.
The ratings also consider the comfortable financial risk profile of the company, which has witnessed a steady improvement over the years following the material deleveraging done since 2021-22, supported by attractive ferrochrome spreads, it said.
The ratings continue to favourably factor in the experience of the promoters in the ferroalloy industry and the established track record of the company as one of the largest exporters of ferrochrome from India.
The ratings also consider IMFA’s competitive cost structure, on a global scale, on account of the integrated nature of its operations as it is largely self-reliant in terms of chrome ore and power, the rating agency said.