Brickwork Ratings downgrades the ratings for the Bank Loan Facilities of Rs. 160.96 Crs. of Mangalam Alloys Ltd. based on best available information, as the issuer did not cooperate.
ParticularsFacilities** | Amount (Rs.Crs.) | Tenure | Rating# | ||
---|---|---|---|---|---|
Previous | Present | Previous (11 Feb 2022) |
Present | ||
Fund Based | 144.33 | 144.33 | Long Term |
BWR BBB/Stable
Reaffirmation |
BWR BB +
/Stable ISSUER NOT COOPERATING* /Downgrade |
Non Fund Based | 16.63 | 16.63 | Short Term |
BWR A3
Reaffirmation |
BWR A4 +
ISSUER NOT COOPERATING* /Downgrade |
Grand Total | 160.96 | 160.96 | (Rupees One Hundred Sixty Crores and Ninety Six lakhs Only) |
BWR has downgraded its rating on the bank loan facilities of Mangalam Alloys Limited (MAL) to BWR BB +/Stable/ BWR A4+ and migrated to the Issuer Not Cooperating category.
The ratings were due for a review in February 2023.BWR took up with the issuer to provide required information over emails and through telephone calls. Despite the best efforts of BWR to get at least the minimum required information for a review, the company has not provided the same. In the absence of the minimum required information BWR is unable to assess the company's financial performance and its ability to service debt and maintain a valid rating. The company has not submitted the monthly No Default Statement and hence based on best available information, lack of management cooperation, and non-submission of NDS the rating for the said bank loan facility is downgraded to BWR BB+ Stable A4+and migrated to the Issuer Not Cooperating category.
The lenders/investors may note to exercise due caution while using the above rating which mentions "Issuer Not Cooperating" since the rating lack any projections or forward looking component as it is arrived at based on the best available information without any management/banker's interaction.
LIMITATIONS OF THE RATING
Information availability risk is a key factor in the assessment of credit risk as generally, non-cooperation by the rated entities to provide required information for a review of the assigned rating may also be accompanied by financial stress. The current rating action has been taken on the basis of the limited information on the issuer’s performance. Accordingly, the lenders, investors and other market participants are advised to exercise appropriate caution while using this rating as it may not adequately reflect the credit risk profile of the society despite a downgrade.
ABOUT THE ENTITYMangalam Alloy limited (MAL) is the flagship company of Unison Metal Limited(UCM) group which was established in 1988, and subsequently registered as a public company in 1995 but not listed. MAL produces Stainless Steel (SS) Ingots in the form of straight length bright and black round bars, Bright Bars, Hexagonal & Square bars, Angle Bars, Flat Bars, Fasteners, and Forging. Products of the company have a usage in diversified sectors such as Oil and Gas, Pump Sector, Engineering Sector. The company business model is primarily B2B.
Please refer to the following link for the previous detailed rationale that captures the Key Financials Drivers and their Description, Liquidity Position. Rating Sensitivities, Key Financial Indicators. View Previous Document
Nil
ANY OTHER INFORMATIONNil
RATING HISTORY FOR THE PREVIOUS THREE YEARS (including withdrawal and suspended)Facilities | Current Rating (2023) | 2022 | 2021 | 2020 | |||||
---|---|---|---|---|---|---|---|---|---|
Type | Tenure | Amount (Rs.Crs.) |
Rating | Date | Rating | Date | Rating | Date | Rating |
Fund Based | LT | 144.33 |
BWR BB+/Stable
(ISSUER NOT COOPERATING* /Downgrade) |
11Feb2022 |
BWR BBBStable
(Reaffirmation) |
NA |
NA
|
25Nov2020 |
BWR BBBStable
(Reaffirmed) |
Non Fund Based | ST | 16.63 |
BWR A4+
(ISSUER NOT COOPERATING* /Downgrade) |
11Feb2022 |
BWR A3
(Reaffirmation) |
NA |
NA
|
25Nov2020 |
BWR A3+
(Reaffirmed) |
Grand Total | 160.96 | (Rupees One Hundred Sixty Crores and Ninety Six lakhs Only) |
BWR complexity levels are meant for educating investors. The BWR complexity levels are available at www.brickworkratings.com / download / ComplexityLevels.pdf. Investors queries can be sent to info@brickworkratings.com.
Hyperlink/Reference to applicable CriteriaAnalytical Contacts | |
---|---|
Anithu Joseph Rating Analyst anithu.j@brickworkratings.com |
RamaKrishna Director-Ratings ramakrishna@brickworkratings.com |
1-860-425-2742 | media@brickworkratings.com |
SL.No. | Name of the Bank/Lender | Type Of Facilities | Long Term(Rs.Crs.) | Short Term(Rs.Crs.) | Total(Rs.Crs.) | |
---|---|---|---|---|---|---|
1 | Deutsche Bank | Term LoanSanctioned | 18.64 | _ | 18.64 | |
2 | Deutsche Bank | Pre ShipmentSanctioned | 10.00 | _ | 10.00 | |
3 | Nutan Nagarik Sahakari Bank | Term LoanSanctioned | 7.32 | _ | 7.32 | |
4 | Nutan Nagarik Sahakari Bank | Term LoanSanctioned | 2.00 | _ | 2.00 | |
5 | Punjab National Bank | Cash CreditSanctioned | 30.00 | _ | 30.00 | |
6 | Punjab National Bank | GECLSanctioned | 5.90 | _ | 5.90 | |
7 | Punjab National Bank | Covid -19 Emergency Line CreditSanctioned | 2.20 | _ | 2.20 | |
8 | SIDBI | GECLSanctioned | 4.43 | _ | 4.43 | |
9 | SIDBI | Term LoanSanctioned | 14.25 | _ | 14.25 | |
10 | State Bank Of India (SBI) | Bank GuaranteeSanctioned | _ | 4.00 | 4.00 | |
11 | State Bank Of India (SBI) | Letter of CreditSanctioned | _ | 9.00 | 9.00 | |
12 | State Bank Of India (SBI) | Credit Exposure Limit (CEL)Sanctioned | _ | 3.63 | 3.63 | |
13 | State Bank Of India (SBI) | Covid -19 Emergency Line CreditSanctioned | 3.09 | _ | 3.09 | |
14 | State Bank Of India (SBI) | Working Capital Term LoanSanctioned | 8.50 | _ | 8.50 | |
15 | State Bank Of India (SBI) | Cash CreditSanctioned | 38.00 | _ | 38.00 | |
Total | 144.33 | 16.63 | 160.96 | |||
TOTAL (Rupees One Hundred Sixty Crores and Ninety Six lakhs Only) |
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