Credit rating company Ltd JCR-VIS has reaffirmed Crescent Steel and Allied Products Limited's (CSAPL) medium to long-term entity rating of A+ (Single A Plus) and short-term entity rating of A-1 (A One).
Further, the medium to long-term rating of CSAPL's TFC issue has also been reaffirmed at AA- (Double A Minus). The outlook on the medium to long-term ratings is 'Stable'. The re-affirmation of ratings reflects the management's strategy to maintain a conservative capital structure commensurate with the cyclicality of the core steel operations with improved focus on strengthening diversification in revenues arising from the textile and the investment divisions.
The performance of yarn division has considerably improved in FY2007 which was able to post nearly break-even results before taxation for the first time since FY2000 post the commissioning of the new unit.