Following the rating upgrade on short term credit as well, the company plans to launch a commercial paper shortly, says Bharat Madan, Group Financial Controller of Escorts
Bharat Madan, Group Financial Controller of Escorts says, the ratings upgrade by ICRA on its credit facilities will help in reducing interest burden, highlighting that the company has been able to persistently improve its rating by a notch every year over the last 4 years.
The information and credit rating agency (ICRA) upgraded Rs 1421 crore long-term and short -term credit facilities of Escorts.
Of the total amount, Rs 200 crore is fund-based facility, Madan says.
Following the rating upgrade on short term credit as well, the company plans to launch a commercial paper shortly.
A combination of factors like a possible cut in interest rates by the Reserve Bank, improving financials of the company and the ratings upgrade, will help Escorts in reducing its interest cost by at least around 10-12 percent from the current level of 55-60 crore last year.
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