ICRA has upgraded the long-term rating assigned to the fund based limits amounting to Rs 129.7 million of Empire Industries (EIL) from BBB+ to A-. The outlook on the long term rating is stable. 
 
ICRA has also upgraded the short term rating assigned to the Rs 200 million non-fund based limits of the company from A2 to A2+.
 
ICRA has assigned an MA rating to the Rs 400 million fixed deposit programme of the company. The outlook on the rating is 'Stable'. Instruments with this rating are considered to have adequate credit quality and the rated deposit programme carries average credit risk.
 
The rating upgrades factor in the revised funding pattern for the Ambernath project. Based on our discussion with the management the maximum capex to be incurred for the project is not expected to exceed Rs 850 million unlike our previous assumptions where the project cost could have been significantly higher thereby impacting the capital structure of the company. The ratings continue to favourably factor in the healthy ca1sh flows from the real estate division, established position of the company in the agency business and comfortable liquidity position with favourable working capital cycle and unutilized bank limits.
 
The ratings remain constrained by the weakening of the profitability indicators on account of weak macro economic conditions limiting pricing flexibility. The agency business continues to face challenges as domestic capex cycle faces a slow down and cost of imports rise on account of a depreciating rupee. Rising competition and over capacity in the glass industry has led to weakening of margins in the glass division as well. 

Shares of the company declined Rs 18.85, or 3.28%, to settle at Rs 556.05. The total volume of shares traded was 451 at the BSE (Tuesday).