Icra assigns stable outlook to ArcelorMittal India

Rating agency ICRA has assigned a long-term issuer rating of AA to ArcelorMittal India and said the outlook on the long-term rating is positive.
"ICRA has assigned a long-term issuer rating of [ICRA] AA (pronounced ICRA double A) to ArcelorMittal India Pvt Ltd (AMIPL)," the rating agency said in a statement.
The assigned rating primarily reflects ArcelorMittal's "status as an entity wholly-owned by ArcelorMittal Group, the strong credit profile of its ultimate holding company, ArcelorMittal SA...," the statement said.
Instruments with the rating AA are considered to have high degree of safety regarding timely servicing of financial obligations. Such instruments carry very low credit risk.

The outlook, it said, may be revised to stable or negative in case of a similar change in ICRA's rating outlook on AMIPL's ultimate parent company AMSA.
While ArcelorMittal India does not have any operations in India at present, the company has recently submitted its proposal for acquisition of a large stressed asset in the steel sector under the Insolvency & Bankruptcy Code (IBC) framework.
ICRA notes that the entity has been incorporated to spearhead the group's foray in Indian market and its entire capital as on March 31, 2017 has been funded by way of equity infusion by its parent company.