Rating Release
Agusto & Co. hereby upgrades the “Bbb” rating assigned to Coleman Technical Industries Limited
The rating expires on 30 September 2024.
Agusto & Co. hereby upgrades the rating assigned to Coleman Technical Industries Limited (“Coleman Wires & Cables”, “Coleman”, “CTIL” or “the Company”) to “Bbb”. The rating reflects Coleman’s operational efficiency and strong ability to pass on cost increases to consumers, which have continued to support healthy profitability and cash flow positions despite the challenging operating environment. The rating also considers CTIL’s expanding electrical cable production and distribution capacities, which should sustain its market leadership status, and the prospects of local recycling of copper and aluminium scraps (backward integration) that will help to build some resilience against price and supply risks associated with imported raw materials. However, the rating is constrained by concerns over the Company’s rising debt profile as well as its persistent working capital deficiency and concentrated ownership structure.
The opinions expressed in this rating release do not represent investment or other advice and should therefore not be construed as such. Visit www.agusto.com for further information.
