Credit Analysis & Research (CARE) reaffirmed 'AAA' ratings to National Aluminium Company's long-term bank facilities of Rs 3 billion.

CARE reaffirmed 'AAA/ A1+' ratings to the company's long-term/ short-term bank facilities of Rs 5.50 billion.

The ratings continue to draw strength from the  long and satisfactory track record of the company, controlling equity stake by the Government of India (GoI),  qualified  professional management team, NALCO's status as the  largest manufacturer and  exporter of alumina,  strategic plant location with  proximity to the major raw material sources and ports, integrated nature of operation with captive bauxite mine, strong financial risk profile supported by healthy debt coverage indicators, comfortable liquidity position with high level of cash surplus, track record of successfully commissioning expansion projects at regular intervals and  high entry barriers in the aluminium industry. 

Ability of the company to improve its profitability while maintaining comfortable liquidity and capital structure in the midst of rising input costs coupled with the inherent cyclicality in the aluminum industry will remain the key rating sensitivities.

Shares of the company to settle at Rs 37.20. The total volume of shares traded was 85,662 at the BSE (Tuesday).