MUMBAI : Credit rating agency Crisil Ltd has downgraded Motherson Sumi Systems Ltd’s (MSSL) long-term instruments to AA+/negative from stable, the leading auto component manufacturer said in a regulatory filing on Monday.
The ratings agency has also reaffirmed Motherson Sumi’s rating on the short-term facilities and commercial paper programmes at A1+. “The rating action reflects Crisil’s belief that MSSL’s business performance will be impacted by sluggish global automotive sales in FY2021, exacerbated by the pandemic and the economic slowdown.
This will lead to a moderation in the company’s cash accruals, and a modest deterioration in key credit metrics, and will be in contrast to an improvement in key credit metrics anticipated earlier,"