Exicom Tele-Systems Limited — Credit Ratings, 14-02-2025: Credit Rating

Exicom Tele-Systems Limited reports a credit rating downgrade by CARE Ratings Limited for its bank facilities. The long-term bank facilities rating has been downgraded to CARE BBB (Negative) from CARE BBB+ and has been removed from the rating watch with developing implications. Additionally, the long-term/short-term bank facilities and short-term bank facilities ratings have been downgraded to CARE BBB (Negative) / CARE A3 from CARE BBB+ / CARE A2, also removed from the rating watch, with a negative outlook in all categories.

Factors contributing to this rating action include operational and financial performance metrics observed for FY24 and 9MFY25. The negative outlook indicates concerns regarding financial stability and revenue variability, which could increase borrowing costs and impact strategic initiatives.

Despite the downgrade, the management maintains optimism about the business outlook, fueled by a robust order book and a commitment to actions that may enhance the company’s creditworthiness moving forward. Investor sentiment may experience caution due to the rating adjustments, but the focus on restoration strategies could provide a roadmap for recovery.