CARE revises BL Kashyap rating to PR2+

MUMBAI: CARE has revised the rating assigned to the short term loan of BL Kashyap & Sons Ltd. from PR1 to ���PR2+���, indicating the instruments have adequate capacity for timely payment and carry higher credit risk compared to those rated higher. The rated amount includes Commercial Paper up to Rs.80 crore which would be carved out of working capital limits of the company,

The rating revision takes into account the compression in profit margins, moderate liquidity on account of stretched working capital cycle and impact on business due to exposure to the real estate segment. The rating is also constrained by substantial exposure to the subsidiary in real estate.

However, the rating continues to be supported by BLK���s long experience in diversified construction activities, track record and project execution capabilities.

Going forward, ability to manage working capital requirement and the continued support to subsidiary companies impacting credit profile of the company would be the key rating sensitivities.