AIR WORKS’ Long and short term rating upgraded to BBB/STABLE by Crisil:
26 December 2019: Crisil has recently upgraded Air Works long and short-term ratings to BBB/Stable and Crisil A3 . This rating upgrade is backed by company's strong business growth and operational efficiencies.
The upgrade reflects Crisil's "expectation of a significant improvement in the credit risk profile of the Company over the medium term".
India is already on the path to become the third largest domestic aviation market in the world. This is followed by Indian Government's efforts to foster the development of MRO in the country
Bordering on these lines, Air Works has made some major changes in the company strategy focussing on increasing centres in India and South Asia.
They are steadily increasing the capacity utilization by signing several long-term maintenance contracts with leading airlines and global OEMs such as Boeing & Embraer over the last 18 months. This has led to the substantial improvement in their operating performance.
Air Works has also successfully sold certain non-core parts of its portfolio - including Air-Livery, Argus, and parts of ATE France, utilizing the proceeds to not just achieve a massive reduction in debt (by more than 60 per cent), but to also expand Air Works' maintenance footprint.
The Kochi MRO facility is expected to be operational by the end of the fiscal and with this Air Works will have an enviable and widest pan-India presence amongst Indian MRO operators to 27 Indian cities.
Currently Air Works has world-class Base maintenance facilities at Hosur (Tamil Nadu), Mumbai, and Kochi (Kerala), serving a portfolio of clients across business and commercial aviation as well as the Indian defence services.
Commenting on the development, Mr. D Anand Bhaskar, MD & CEO, Air Works said, "The rating upgrade is an important milestone and it reaffirms our business strategy, including the restructuring of our balance sheet. It is also especially commendable since it recognizes Air Works' operating efficiency, market position and growth trajectory over the course of the past 18 months, in a scenario where a lot of companies are undergoing stress".
Air Works is India's biggest, most-diversified, independent MRO and aviation services provider today.
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