(The following was released by the rating agency) NEW DELHI/SINGAPORE, May 03 (Fitch) Fitch Ratings has assigned India-based ACCIL Corporation Limited's (ACL) INR3,000m long-term loans a 'Fitch BBB-(SO)(ind)' rating.
The rating is solely based on an unconditional and irrevocable corporate guarantee provided by ACL's group company - Asian Colour Coated Ispat Limited (ACCIL, 'Fitch BBB-(ind)'/Stable), for the rated loans.
In the financial year ended March 2011 (FY11), ACCIL reported revenue of INR15,991m (FY10: INR12,879m), EBITDA margin of 14.4% (15.6%) and net income of INR1,002m (INR835m). For more details on ACCIL's ratings and credit profile, please refer to the rating action commentary, entitled "Asian Colour Coated Affirmed at 'Fitch BBB-(ind)'/Stable", dated 19 April 2012, and available at www.fitchratings.com.
Negative rating action may result from a downgrade of ACCIL's ratings or revocation of the corporate guarantee. Conversely, any improvement in ACCIL's ratings would lead to an upgrade of ACL's rating.
Incorporated in 2005, ACCIL is a closely held company, involved in the trading and manufacturing of steel products. Its facility is located in Haryana, with a wide cold rolling mill capacity of 180,000 metric tonnes per annum (MTPA), galvanising line facility of 120,000MTPA and colour coating line capacity of 60,000MTPA.
ACL was incorporated in 1991 as Benzer Agencies Limited. The company was subsequently acquired by Mr. Ram Kumar Aggarwal, and since then has become part of the ACCIL group. ACL is developing a five-star hotel in Jaipur (Rajasthan), which is likely to commence operations in April 2013. Total project cost of around INR4.5bn is being funded at a debt/equity ratio of 2:1. ACL has entered into an agreement with InterContinental Hotels Group for using the 'Holiday Inn' brand name and the management of the property. This would provide the company access to the brand's global clientele and reservation system.