ICRA revises credit ratings of Wheels India Ltd

Wheels India Limited, a company promoted by TVS Group, informed on Friday early morning that it has recently received a revised credit rating from ICRA, i.e. on June 10, 2020.

On commercial paper, the rating downgraded from (ICRA) A1+ to (ICRA) A1. This is because of a stress on liquidity position due to sharp demand contraction in automotive industry.

Medium-term fixed deposit has a similar rating of MA+ (negative) as of May 13, 2020, which was revised from stable to negative, due to COVID-19 outbreak.

The rating on long-term loan is (ICRA) A+ (negative), similar to the ratings as on May 13, 2020. It was downgraded from stable to negative, due to negative outlook, caused as a result of Cornavirus outbreak.

The short-term non-funded based facility loans rating downgraded from (ICRA) A1+ to (ICRA) A1 due to the stress on liquidity positions, as a consequence of reduced demand in Indian automotive industry and earthmoving industry, following COVID-9 pandemic.

At 11.40 am, the stock of Wheels India Ltd was trading at Rs 491.15, down by 2.10 per cent against its previous close of Rs 501.70. Its 52-week high is Rs 850.00 while, its 52-week low is Rs 284.15 on BSE.