Amber Enterprises India Limited announced a significant upgrade in the credit rating of its material subsidiary, ILJIN Electronics (India) Private Limited. The upgrade, issued by CRISIL Ratings, reflects an improvement in the company's financial strength and stability.

Key Rating Changes

The upgrade removes ILJIN Electronics from the Rating Watch with Developing Implications, signaling a more stable outlook for the company.

Facility Details

The upgraded ratings apply to ILJIN Electronics' total bank loan facilities of Rs. 320.00 crore. These facilities are distributed across multiple banks, including:

• HDFC Bank Limited
• ICICI Bank Limited
• YES Bank Limited
• Axis Bank Limited

Implications of the Upgrade

The rating upgrade to 'CRISIL AA-/Positive' for long-term facilities and 'CRISIL A1+' for short-term facilities indicates:

1. A higher degree of safety regarding timely servicing of financial obligations
2. A very strong capacity for timely payment of short-term debt obligations
3. A positive outlook, suggesting the possibility of further upgrades in the near to medium term

This improvement in credit rating could potentially benefit ILJIN Electronics by:

• Enhancing its ability to access credit at more favorable terms
• Improving investor confidence in the company's financial health
• Potentially lowering borrowing costs for future financial requirements

For Amber Enterprises India Limited, as the parent company, this upgrade reflects positively on its overall group financial strength and the performance of its material subsidiaries.

Investors and stakeholders of Amber Enterprises may view this development as a positive indicator of the group's financial management and the growing strength of its subsidiary operations.

It's important to note that while credit ratings provide valuable insights into a company's financial health, they should not be the sole factor in making investment decisions. Investors should consider a wide range of financial and non-financial factors when evaluating the company's overall performance and prospects.

CRISIL, a leading credit rating agency, has reaffirmed Amber Enterprises India Limited 's credit ratings. The company's long-term rating has been maintained at AA-/Positive, while its short-term rating remains at A1+. Notably, CRISIL has removed Amber Enterprises from its 'Rating Watch with Developing Implications' list.

Credit Ratings Overview

The reaffirmed ratings cover Amber Enterprises India's total bank loan facilities worth Rs. 3,252.00 crore. These facilities are spread across multiple banks, including HDFC Bank, ICICI Bank, Axis Bank, and others. The ratings breakdown is as follows:

Facility-wise Breakdown

CRISIL's rating action covers various types of banking facilities utilized by Amber Enterprises India. Here's a detailed breakdown of the rated facilities:

Key Banks Involved

The credit facilities are provided by a diverse group of banks, reflecting Amber Enterprises India's strong banking relationships. Some of the key banks include:

• HDFC Bank Limited
• ICICI Bank Limited
• Citibank N.A.
• Axis Bank Limited
• YES Bank Limited
• IndusInd Bank Limited

Implications of the Ratings

The reaffirmation of Amber Enterprises India's credit ratings by CRISIL indicates:

1. Strong Credit Profile: The AA- long-term rating suggests a high degree of safety regarding timely servicing of financial obligations.
2. Short-term Strength: The A1+ short-term rating indicates the highest level of safety for short-term debt instruments.
3. Positive Outlook: The 'Positive' outlook on the long-term rating suggests a likelihood of rating upgrade in the medium term.
4. Removal from Rating Watch: This action implies that the uncertainties that had placed the ratings under watch have been resolved or clarified.

The reaffirmed ratings and removal from the Rating Watch list may positively impact Amber Enterprises India's ability to access capital markets and negotiate favorable terms with lenders. It also serves as a strong signal to stakeholders about the company's financial health and creditworthiness.

Investors and stakeholders should note that while these ratings provide valuable insights into Amber Enterprises India's credit profile, they should not be considered as recommendations for buying, selling, or holding the company's securities.