Ahluwalia Contracts India Limited is a leading construction company in India that specializes in infrastructure development, civil construction, residential and commercial real estate projects. The company has been in operation for over four decades and has an impeccable track record of delivering quality projects on time. In this article, we will review the credit rating of Ahluwalia Contracts India Limited.
Credit Rating Overview
A credit rating is a measure of the creditworthiness of a company or an individual. It is a critical factor in determining the ability of a borrower to repay its debts. There are several credit rating agencies in India, including CRISIL, ICRA, and CARE Ratings, that provide ratings based on the company`s financial performance, business operations, and market position.
Ahluwalia Contracts India Limited has been evaluated by various rating agencies, and their ratings are as follows:
CRISIL: CRISIL is India`s leading rating agency that evaluates the creditworthiness of companies based on various parameters. Ahluwalia Contracts India Limited has been assigned a long-term rating of `CRISIL BBB+` and a short-term rating of `CRISIL A2.`
ICRA: ICRA is another leading rating agency in India that provides ratings for companies. Ahluwalia Contracts India Limited has been assigned a long-term rating of `ICRA BBB+` and a short-term rating of `ICRA A2.`
CARE Ratings: CARE Ratings is a credit rating agency that provides ratings to companies based on various factors like financial performance, business operations, and market position. Ahluwalia Contracts India Limited has been assigned a long-term rating of `CARE BBB+` and a short-term rating of `CARE A2+.`
What do these ratings mean?
A rating of `BBB+` or above is considered investment grade, indicating that the entity has a moderate degree of safety in terms of timely servicing of financial obligations. The `+` sign indicates that the rating is at the higher end of the rating level.
A rating of `A2` or `A2+` is considered as a short-term rating, which indicates a strong ability of the company to meet its short-term obligations.
Implications of the ratings
The ratings assigned to Ahluwalia Contracts India Limited indicate that the company has a moderate degree of safety regarding its ability to meet its financial obligations. The ratings also reflect the company`s strong market position, good operational efficiency, and diversified client base.
Ahluwalia Contracts India Limited is a leading construction company in India with a robust track record. The ratings assigned by various rating agencies reflect the company`s strong financial position, efficient operations, and diversified client base. These ratings can help investors make informed decisions while investing in the company.