India Ratings assigns M&M's non-convertible debenture with 'AAA' ratings

Mahindra & Mahindra on Monday, was assigned with stable outlook by India Ratings on its bonds and commercial paper programme.

It said in a statement,”India Ratings has assigned M&M's proposed Rs 475 crore non-convertible debenture (NCD) programme a 'Provisional IND AAA' ratings with stable outlook.”

Further it said,The agency has also assigned M&M's Rs 700 crore commercial paper (CP) programme a rating of 'Ind A1+'.

The NCDs are likely to have a tenor of 10 years with a bullet repayment at the end of the tenor.

From this NCDs and CP, the amount raised will be utilized for the company's capex, working capital and other general corporate purposes.

Ind-Ra has taken a consolidated view of M&M and all its non-financial subsidiary companies to arrive at the ratings, excluding its financial services subsidiary – Mahindra & Mahindra Financial Services (MMFSL,'IND AAA'/stable).