Gabriel India

The outstanding rating on the non convertible debenture issues of Gabriel India (GIL) has been downgraded from `BBB plus' (triple B plus) to `BBB minus' (triple B minus).

The revision in rating is on account of the company's below par financial risk profile as indicated by high gearing (as measured by total debt/tangible networth) levels and low interest cover (as measured by PBDIT/Interest Expenses), profitability pressures arising out of capacity surpluses, and the continued absence of returns from its Rs. 33.10 crore investment in its subsidiary - Stallion Shox.

The rating also takes into account GIL's market leadership in the shock absorber business, its manufacturing presence close to its major customers and its status as the flagship of the Anand group of companies - a group that has a long standing and diverse presence in the Indian auto ancillary industry.

GIL is the oldest company in the Delhi-based Anand group, and is engaged in the manufacture and sale of shock absorbers, struts, front forks and engine bearings.