Credit rating agency India Ratings and Research has awarded its top AAA rating to Motherson Sumi Systems, the auto components manufacturer said.
Ind-Ra, a unit of global rating agency Fitch, took into consideration the company’s strong trackrecord and diversified client-based to issue the rating.
“MSSL’s diversified customer base and product profile, strong track record of revenue growth and profits, ability to turnaround acquisitions, global manufacturing footprint and high ROCEs in key businesses, good liquidity across the consolidated profile were some of the key factors for receiving the rating,” the auto components maker said, quoting Ind-Ra.
A high corporate rating by a recognized agency helps the company receive loans and other financing opportunities are lower cost compared to firms that are rated at BBB or BB.
The auto parts maker said India Ratings took note of its long-standing relationships with key global automakers (OEMs).
“Of the top 21 OEMs, the company has more than 20 years of relationship with 17 OEMs,” Motherson Sumi said.
It was also pointed out that Motherson Sumi has a policy of not having any component, customer or country contributing more than 15% to the business. This, said India Ratings, has ensured risk mitigation and steady growth.
“Our teams continue to excel and this is excellent validation for all their effort,” said Vivek Chaand Sehgal, Chairman, Samvardhana Motherson Group. “The vision of becoming the Globally Preferred Solutions Provider continues to drive our passion to do better.”