(ADPnews) - Aug 26, 2009 - Indian Credit Analysis & Research (CARE) said yesterday it assigned a rating of BBB- to the long-term bank facilities of local Indira Container Terminal Pvt Ltd (ICTPL).
This rating is applicable for facilities having tenure of over one year. Facilities with this rating are considered to offer moderate safety for timely servicing of debt obligations. Such facilities carry moderate credit risk.
The agency also assigned a rating of PR3 to the company's short-term bank facilities. This rating is applicable for facilities having tenure up to one year. Facilities with this rating would have moderate capacity for timely repayment of short-term debt obligations at the time of rating and carry higher credit risk as compared to facilities rated higher.
The ratings derive strength from the strong promoter group, ICTPL's experienced management, financial tie-up, possession of critical approvals including environmental clearances and the undertaking from promoters for meeting cost overruns.
The ratings are, however, constrained by drop in container traffic movement, delay in dredging, landfill activities and development of container evacuation facilities for which ICTPL is dependent on Mumbai Port Trust (MbPT).
The ability of the company to successfully re-negotiate the terms of the license agreement with MbPT and the bankers, achieving the projected throughput and the risks associated with the timely completion of the project are the key rating
sensitivities.
Rating agency website: www.careratings.com
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