ICRA has reaffirmed the LBBB (pronounced L triple B) rating assigned to the Rs. 19.16 Crores (revised from Rs. 10.9 Crores) term loans and Rs. 60 Crores (revised from Rs. 55.9 Crores) long term fund-based limits of Goodluck Steel Tubes Limited (GSTL). The outlook on the long term rating is stable. ICRA has also reaffirmed the A3+ (pronounced A three plus) rating assigned to the Rs. 28.14 Crores (reduced from Rs.39.5 Crores) short term fund based limits and Rs. 47.99 Crores (reduced from Rs. 48.99 Crores) non-fund based limits of GSTL.The rating reaffirmation factor in the GSTL's experienced management and its presence in high value added products (forgings, precision tubes and GP/GC sheets) which has resulted in relatively higher profitability in comparison other ERW pipes manufacturers. The ratings are however constrained by GSTL‟s high dependence on external debt which has resulted in high gearing and modest debt coverage indicators. Moreover, company revenues remain exposed to adverse variations in steel industry which is inherently cyclical in nature. While assigning the rating, ICRA also notes the capacity expansion steps proposed to be undertaken by the company in the short term which will result in augmentation of its revenues and profitability in the short term. However, ICRA notes that these capex plans if funded by debt will translate into additional debt and repayment burden on the company.