CRISIL has assigned following ratings for Ratnamani Metal & Tubes. INR 500 million cash credit limit AA-/stable
INR 1,030 million term loan AA-/stable
INR 2,150 million letter of credit P1+
INR 1,000 million bank guarantee P1+
INR 100 million line of credit P1+
INR 400 million letter of credit bill discounting P1+

The release said that “CRISIL’s ratings on Ratnamani Metal & Tubes reflect its strong financial risk profile and leadership position in the stainless steel tubes and pipes segment, its diversification into steel pipe manufacturing, and the healthy demand prospects in end user industries. The ratings also factor in its high operating efficiencies. These rating strengths are, however, partially offset by the working capital intensive nature of Ratnamani’s operations and the susceptibility of its operating margins to fluctuating raw material prices.”