India Ratings and Research (Ind-Ra) has assigned Escorts long-term issuer rating of 'IND A-'.The outlook is stable. 

The ratings reflect the company's comfortable credit profile and Ind-Ra's expectations of an improvement in the profile. The company's current initiatives on improving the cost structure and product mix across all segments will aid its profitability and cash flow, leading to deleveraging.

However, the tractor industry faced a volume decline in FY15 and a continuation of the trend over FY16-FY17 could put stress on the profitability and credit profile of sector companies in the near term. Nevertheless, tractor volumes are likely to bottom out in FY16, with a gradual improvement FY17 onwards.