Hindusthan National Glass: debenture programme rated

Hindusthan National Glass & Industries Ltd has been assigned a rating of AA- to its proposed INR 250 million (USD 5 million /EUR 3.7 million) non-convertible debenture (NCD) programme by Indian credit…

Hindusthan National Glass & Industries Ltd has been assigned a rating of AA- to its proposed INR 250 million (USD 5 million /EUR 3.7 million) non-convertible debenture (NCD) programme by Indian credit rating agency Credit Analysis & Research Ltd (CARE), it was announced on 19 March 2009. The rating derives its strength from the long and satisfactory track record of the company, its leading position in the domestic container glass industry, diversified customer base, modest growth in major user industries, pan-Indian presence and comfortable financial position. It also factors in the capital intensive nature of the business and the requirement for the periodical refurbishment of furnaces involving substantial capital outlay and temporary shut-down of production, increases in major raw material prices, risk associated with on-going projects, possible threat from substitute products, and the current economic slowdown.