SMRP BV receives Ba1 ratings from Moody's, placed rating on review for upgrade

Samvardhana Motherson Automotive Systems Group BV (SMRP B.V.) [100% subsidiary of Samvardhana Motherson International Limited (SAMIL)] has been assigned a new rating of Ba1 corporate family rating (CFR), on review for an upgrade from Moody's Ratings (Moody's), which is a reflection of the strong performance and structure simplification thereby including majority of SAMIL's international businesses under SMRP B.V . During the review period, Moody's will closely evaluate the company's ability to maintain credit metrics and financial policies that align with an investment-grade rating and aim to conclude the review post FY2024 results.

Moody's, in their press release (https://ratings.moodys.com/ratings-news/420333), highlighted that SMRP B.V's credit strengths include; strong parentage by single shareholder SAMIL, Improved scale, size and profitability with a highly diversified business model, Strong execution of acquisition strategy and proven track record of financial discipline. The rating agency also highlighted the positive impact of the business reorganisation, where the majority of the international businesses of SAMIL were moved under SMRP BV. Additionally, Trust from its long-standing customers, the strategy of increasing content per vehicle and global functional synergies such as sourcing, treasury etc. will support its growth trajectory and deliver value to its investors.

Shares of Motherson Sumi Systems Limited was last trading in BSE at Rs. 128.65 as compared to the previous close of Rs. 125.40. The total number of shares traded during the day was 725866 in over 12714 trades.

The stock hit an intraday high of Rs. 129.05 and intraday low of 125.20. The net turnover during the day was Rs. 92608968.00.

Source : Equity Bulls

Keywords

MothersonSumiSystems INE775A01035 RatingUpdate Moodys Ba1