CRISIL has reaffirmed 'A+/Negative/A1' on the bank facilities and debt programmes of Sterlite Technologies (STL). The ratings continue to reflect STL's leadership position in the power transmission conductor (PTC) and telecommunication (telecom) cable segments, healthy operating capabilities, and benefits expected from the healthy growth prospects for its end-user industries.

These rating strengths are partially offset by the company's average financial risk profile, working-capital-intensive operations, and exposure to risks associated with its transmission projects.

CRISIL believes that STL's financial risk profile will remain constrained over the medium term by its average financial risk profile. The ratings may be downgraded if the company in unable to improve its capital structure and debt protection metrics over the medium term.

The ratings may also be downgraded in case of any sustained pressure on STL's operating performance. Conversely, the outlook may be revised to 'Stable' in case of significant improvement in the company's capital structure and debt protection metrics, most likely because of equity infusion in the company.

Shares of the company declined Rs 0.75, or 1.28%, to settle at Rs 57.95. The total volume of shares traded was 263,001 at the BSE (Tuesday).