Ind-Ra affirms AGS Transact Technologies Ltd's rating

India Ratings and Research (Ind-Ra) has affirmed AGS Transact Technologies Limited's (AGS Transact) Long-Term Issuer Rating at 'IND A+' while revising the Outlook to Negative from Positive. The agency has downgraded the short-term debt rating to 'IND A1' from 'IND A1+'.

Ind-Ra has taken a consolidated view of AGS Transact and its subsidiaries including Securevalue India Limited (SVIL; debt rated at 'IND A+'/Stable; 100% owned by AGS Transact), together referred to as AGS Transact group, given the strong operational and strategic linkages among them.

The Negative Outlook and the downgrade of the short-term bank loan rating factor in the consolidated elongated working capital cycle, with a sizeable portion of receivables that are more than six months old, and a stagnant revenue profile. The affirmation continues to reflect the group's strong market positioning across the payment value chain (automated teller machines (ATMs) management, digital payment solutions and cash management) and comfortable credit metrics. Additionally, the company's long-term contracts to provide critical services to strong counterparties provide comfort around revenue visibility. Furthermore, Ind-Ra believes regulatory tailwinds in the payment solutions business will provide additional avenues for revenue growth.

Shares of AGS Transact Technologies Ltd was last trading in BSE at Rs. 49.06 as compared to the previous close of Rs. 48.96. The total number of shares traded during the day was 35569 in over 793 trades.

The stock hit an intraday high of Rs. 50.90 and intraday low of 48.60. The net turnover during the day was Rs. 1767488.00.

Source : Equity Bulls

Keywords

AGSTransactTechnologies RatingUpdate Downgrade