ICRA assigns 'A1+' to CP Prg of Indian Hotels
Rating agency ICRA today assigned the highest rating (A1+) to the Rs 200 crore Commercial Paper (CP) Programme of Indian Hotels Company, the Tata Group hospitality arm.
By PTI |
NEW DELHI: Rating agency ICRA today assigned the highest rating (A1+) to the Rs 200 crore Commercial Paper (CP) Programme of Indian Hotels Company, the Tata Group hospitality arm.
The ratings reflect the company's leadership position in the hotel industry and the established 'Taj' brand name, ICRA said in a release.
The rating has taken into account the company's strong profitability, comfortable cash accruals, healthy capital structure and the improvement in return on capital (RoCE) despite considerable capital expenditure and investments over the past five years, it said.
The rating is however tempered by the inherent cyclicity and the highly capital intensive business model of the hotel industry and the company's significant expansion plans through both inorganic acquisitions and investments, it added.
The ratings reflect the company's leadership position in the hotel industry and the established 'Taj' brand name, ICRA said in a release.
The rating has taken into account the company's strong profitability, comfortable cash accruals, healthy capital structure and the improvement in return on capital (RoCE) despite considerable capital expenditure and investments over the past five years, it said.
The rating is however tempered by the inherent cyclicity and the highly capital intensive business model of the hotel industry and the company's significant expansion plans through both inorganic acquisitions and investments, it added.
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