India Ratings and Research (Ind-Ra) has assigned KEC International's (KEC) additional Rs 3,000 million commercial paper (CP) programme a rating of ‘IND A1+’. This is in addition to the Rs 2,000 million CP rated by the agency in November 2015. The CP has been carved out of KEC's working capital limits. Ind-Ra has taken a consolidated view of KEC and its subsidiary to arrive at the rating.

KEC will use CP proceeds for working capital requirements.

KEC had unused fund-based and non-fund-based limits of 18% and 26%, respectively, on average during the 12 months ended November 2015. Most of its non-fund-based limits (80%) were bank guarantees.

Ind-Ra expects KEC's cash flow from operations to improve from FY16 based on an improvement in the profitability and a stable working capital cycle.