CARE upgraded Mahindra & Mahindra Credit Rating to AAA

Credit Analysis & Research Ltd. (CARE) upgraded the credit rating of Mahindra & Mahindra’s to AAA. The rating agency has given its highest ‘CARE AAA’ level of rating to the homegrown manufacturer M&M for its stronghold in financial services. 

Mr. Anand Mahindra, Chairman, Mahindra Group, said, “This rating upgrade by CARE is the result of our proven financial flexibility in an increasingly challenging environment. With this, we have secured AAA rating from both CARE and India Rating (a Fitch group company).”

CARE, the rating agency started its operation in April 1993 and within two decades of its existence it has established as the second-largest credit rating agency in India. The company has a rating volume of debt of around Rs. 56,990 billion (as on March 31, 2014). 

According to Mr. V S Parthasarathy, Chief Financial Officer, Group CIO, EVP –Group M&A & Member of the Group Executive Board, Mahindra & Mahindra Ltd.,"The current rating upgrade reaffirms and exemplifies the operational and financial excellence of the Group. We shall strive to guard this highest rating by working towards sustained leadership in all our businesses." 

Furthermore, the group’s automobile branch recently managed to retail over 1,00,000 units of its XUV500, since its launch in 2011. The 1,00,000th unit of the SUV was sold on Tuesday, about 33 months after the sales commenced. While the 50,000 units milestone was achieved in January last year.

All the variants of XUV 500, house a powerful 2.2-litre four cylinder diesel engine which develops maximum power output of 140 bhp with 330 Nm of peak torque. The engine is mated to six-speed manual gearbox. XUV 500 is offered in both the front as well as all wheel drive option. To further boost the sales of XUV 500, the automaker introduced an entry-level W4 variant priced at INR 10.95 lakhs (ex-Showroom, New Delhi) last year.