Brickwork Ratings assigns 'BWR BBB-' to JKS Construction Private Limited

Brickwork Ratings (BWR) has assigned the rating of BWR BBB- (Pronounced BWR Triple B minus) with a stable outlook for the various long term Bank Loan Facilities of JKS Construction Private Ltd of Rs 35 cr.The rating "BWR BBB-" stands for an instrument that is considered to have moderate degree of safety regarding timely servicing of financial obligations. Such instruments carry moderate credit risk.

Brickwork Ratings (BWR) has also assigned the rating of BWR A3 (Pronounced BWR A three) for the short term Bank Loan Facilities of JKS Construction Private Ltd of Rs 25 cr. The rating "BWR A3" stands for an instrument that is considered to have moderate degree of safety regarding timely payment of financial obligations. Such instruments carry higher credit risk as compared to instruments rated in the two higher (viz. A1 and A2) categories.

The rating, inter alia, factors Long experience of promoters in construction business, Company's performance, reputed clientele, and healthy order book position.

However, the rating is constrained by the small size of the Company, customer/ segmental concentration in the revenue base, stretched working capital cycle and current state of infrastructure sector in India.

BWR has principally relied upon the audited financial results of JKS Construction upto FY11, Provisional financials for FY12, projected financials, publicly available information and information and clarification provided by the company management.

Source : Equity Bulls

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