Mumbai, India, October 13, 2015:
S&P’s rating reflects the company’s leading market position in tractor and utility vehicle (UV) segments, strong financial ratios, and financial flexibility arising out of significant investments in group companies.
This rating action of S&P is based on M&M’s conservative leverage policies, healthy cashflow generation and the market leading position in Indian Tractor and UV industries, risk mitigation through presence in various businesses with a pan-India footprint and a good mix of rural and urban customers.
India’s sovereign rating from S&P also stands at BBB-.
Mr. Anand Mahindra, Chairman, Mahindra Group, said on this occasion, “S&P’s rating is an important event in M&M’s 70 year history. To add, the investment grade ratings from S&P demonstrates a unanimous vote of confidence in M&M’s diversified business model, stellar credit profile and high standards of corporate governance practices.We certainly celebrate the ratings as a worthy milestone in M&M group’s global aspirations.”
Mr. V.S Parthasarathy, Group CFO, Group CIO & President (Group Finance and M&A), Member of the Group Executive Board, Mahindra & Mahindra Ltd., said “S&P’s investment grade rating provides assurance in double measure to the stakeholders of M&M who have always reposed faith in its conservative and robust financial policies. The rating will serve to enhance M&M’s prestige in the international capital markets. The investment grade rating is a validation of our management vision and we hold it dear as a commitment to the path of excellence.”
M&M has been assigned Baa3 ratings by Moody’s recently. With S&P’s and Moody’s ratings, M&M will now enjoy dual investment grade ratings which are equivalent to India’s investment grade sovereign ratings from both the above agencies.
M&M has been already assigned the highest credit rating of AAA by all four leading domestic credit rating agencies, CRISIL, India Ratings, ICRA and CARE.Follow Punekar News: