Samvardhana Motherson gets A rating from JCR on back of financials and acquisition strategy
This places SAMIL two notches above the sovereign rating of India (BBB+) by JCR, making it the highest rated Indian company according to the agency.
In a move likely to be seen positively by investors, Samvardhana Motherson International Limited (SAMIL), a supplier of automotive components, has been assigned a Foreign Currency Long-Term Issuer Rating of A, with a stable outlook by the Japan Credit Rating Agency (JCR), the company informed in a regulatory filing.
This places SAMIL two notches above the sovereign rating of India (BBB+) by JCR, making it the highest rated Indian company according to the agency.
JCR highlighted SAMIL's diversified customer base, global manufacturing footprint, strong partnerships with major OEMs, and a history of strategic mergers and acquisitions (M&A) that have fuelled growth and diversification as key factors behind the high rating. The stable outlook reflects JCR's expectation of continued robust financial performance and adherence to prudent financial policies by SAMIL's management.
This rating action follows similar positive actions by Moody's and Fitch, the company continued.
JCR's press release specifically commended SAMIL's M&A strategy, noting that the company has secured acquisitions at reasonable prices and achieved synergies, enabling both growth and financial discipline.
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02 Jul 2024
Ketan Thakkar
