ICRA assigns high credit quality rating to OCL's Rs 50 cr debt

Credit rating agency ICRA has assigned a high credit quality rating 'LAA-' to Orissa-based cement firm OCL India Ltd's Rs 50 crore long-term debt programme.

It has also reaffirmed the highest credit quality rating 'A1+' assigned to OCL's Rs 70 crore short term debt, ICRA said in a statement.

The rating factored the favourable demand-supply position for cement in the eastern region, healthy profitability of the company driven by steady profitability of its cement business and improved performance of its refractories division.

Besides, the rating took into account the improving cost structure of the company and its comfortable liquidity.

It also took into consideration the relatively small size and the geographical concentration of its core cement business, the vulnerability of the refractories and the sponge iron business to cyclic downturns in its main user industry steel and the relatively large size of its capex plans.

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