CRISIL has assigned its 'AAA/Stable' rating to the Rs 2.5 billion non-convertible debenture (NCD) issue of UltraTech Cement. It has also reaffirmed the outstanding ratings on the company's debt programmes and bank facilities at 'AAA/Stable/A1+'.

The ratings continue to reflect UltraTech's robust financial risk profile marked by strong debt protection metrics, and strong business risk profile marked by its dominant position in the Indian cement industry and strong focus on operating efficiencies. These rating strengths are partially offset by the cyclicality in the cement industry.

CRISIL believes that UltraTech will maintain its strong financial risk profile over the medium term, supported by its healthy cash accruals and substantial cash surplus. The company will maintain its healthy business risk profile over the medium term, driven by its strong market position and diversified geographical base. The outlook may be revised to 'Negative' if the company undertakes a large debt-funded acquisition weakening its financial risk profile.

Shares of the company declined Rs 37.9, or 1.44%, to trade at Rs 2,586.80. The total volume of shares traded was 3,247 at the BSE (12.04 p.m., Thursday).