ICRA upgrades Gulf Oil Lubricants' long term rating

NEW DELHI: Indian credit ratings agency ICRA has upgraded long-term rating for bank facilities of Gulf Oil Lubricants (GOLI) to AA- (stable). The agency has reaffirmed the company’s short term rating for bank facilities to A1+.

ICRA has upgraded the long-term rating from A+ to AA- and reaffirmed the short-term rating of A1+, which is the highest rating for Short Term, on the fund based limits and non-fund based limits of Gulf Oil Lubricants India aggregating to Rs 392 crore.

The outlook on the long-term rating is stable. The upgrade of the long-term rating takes into account the improving market share of GOLI in the domestic lubricants industry, driven by its strong marketing efforts, well-recognised “Gulf” brand and wide distribution network.

The ratings also take into account the company's strong financial profile, characterised by healthy profitability levels, comfortable capital structure and strong liquidity profile.

Gulf Oil Lubricants India, part of Hinduja Group, markets a wide range of automotive and industrial lubricants, greases, 2-wheeler batteries, etc.