CARE downgrades Hindustan Aeronautics' rating as receivables rise

Rating agency CARE has downgraded Hindustan Aeronautics’ (HAL’s) long and short bank rating from ‘AAA’ to ‘AA-Plus’ on a build-up of receivables, leading to increased reliance on working capital debt. The downgrade reflects changes in HAL’s operating environment, involving reduced advance funding by customers, CARE said.
 
HAL is majorly owned by the government and has a strategic role in the defence programme. It is the only Indian company having specialised in aircraft manufacturing and also providing Maintenance, Repair and Overhauling services (MRO). Further, HAL has established a track record in offering product life cycle support.
 
Earlier, CARE said,