ICRA has assigned a long-term rating of LBB- (pronounced L double B minus) to the Rs. 24.0 crore working capital limits and Rs. 5.9 crore term loan of Hisar Metal Industries Limited (HMIL). ICRA has also assigned a short term rating of A4 (pronounced A four) to the Rs. 5.1 crore non-fund based limits of HMIL. The long term rating carries a stable outlook.

The ratings factor in the high gearing of the company, its modest debt protection indicators and its vulnerability to adverse movement in raw material prices. The ratings also factor in the weakening of the profitability metrics in H1 FY 2011. However, the ratings favorably take into account HMIL's experienced management and long track record of operations in the steel industry, its presence in export markets and its established relationships with customers and suppliers.