 "Aluminium")
Crisil has revised the rating outlook on Hindalco Industries' long-term debt instruments to ‘stable’ from 'positive', on the back of likely increase in the company's financial leverage following the debt-funded $2.8 billion acquisition of Aleris Corporation by its subsidiary Novelis Inc.
This, coupled with the moderation in operating profit in the wake of challenges in aluminium markets and the Covid-19 pandemic may take the consolidated net debt-to-EBITDA (earnings before interest, tax, depreciation, and amortisation) to above 3.5 times in fiscal 2021. "This is higher than our previous expectations," said Crisil in its report.
However, ratings at current levels factor in
