Mangal Electrical Industries Ltd Receives Rs 133 Crore Credit Rating

Total Rated Facilities: Rs 133.12 crore | Rating Assigned: CARE A-/Stable and CARE A2+

Reader Takeaway: CARE Ratings affirms stable credit standing; monitoring annual debt servicing requirements remains key for investors.

What just happened

CARE Ratings Limited has completed its review of Mangal Electrical Industries Ltd, assigning ratings to its total bank facility portfolio of Rs 133.12 crore. The agency has issued a CARE A- (Stable) rating for long-term facilities and a dual rating of CARE A-/Stable / CARE A2+ for long-term/short-term facilities.

Why this matters

The rating provides a standardized assessment of the company's ability to meet its financial obligations. It indicates the credit risk profile perceived by the agency regarding the company's existing debt arrangements with SIDBI and HDFC Bank.

Breakdown of Facilities

The rated facilities are structured across two primary lenders:

• Long Term Term Loans: Rs 1.87 crore provided by the Small Industries Development Bank of India (SIDBI), repayable in EMIs.
• Long Term/Short Term Facilities: Rs 131.25 crore provided by HDFC Bank Ltd, which includes Rs 122.25 crore in Bank Guarantees and Rs 9.00 crore in Cash Credit.

Risks to watch

Investors should note that these ratings are subject to annual surveillance. Any significant deterioration in the company's liquidity or a failure to maintain debt service coverage ratios could lead to a rating revision by CARE Ratings in the future.

Context metrics

The ratings assigned are valid for one year and are subject to periodic review by the rating agency. The disclosure serves as a mandatory transparency update regarding the company's bank facility exposure.