- Non-convertible debentures - 104.45 crore Rating: upgraded from A+ to AA-
- Commercial paper programme - Rs 50 crore Rating: upgraded from P1 to P1+
Crisil has upgraded Apollo Tyres' Rs.104.45 crore non-convertible debenture programme from A+ (pronounced single A plus) to AA- (pronounced double-A minus) and its Rs. 50 crore commercial paper programme from P1 (pronounced P One) to P1+ (pronounced P One plus).
The revision in rating factors an improvement in Apollo Tyres' financial risk profile on account of conversion of warrants (inflow of Rs 32.5 crore to net worth), a substantial improvement in working capital management and agreement with labour resulting in sorting out of operational disputes, supported by a demand pick-up in the industry. The rating continues to factor in Apollo Tyres' position as a leading player in the truck and bias tyres segment, offset by the industry's vulnerability to economic cycles, raw material fluctuations (esp. rubber), and over-supply.