Indian Aliminium Company Ltd

Crisil has reaffirmed the `FAAA' rating, indicating highest safety, assigned to the fixed deposit programme of Indian Aluminium Company Ltd.

It also reaffirmed the `P1+' rating, indicating very strong position, assigned to the Rs 150-crore commercial paper programme of the company. The ratings continue to reflect Indal's strong market position in the semi-fabricated (semi-fabs) aluminum products segment; the comfortable business position of its alumina business; its favorable and improving profitability and its comfortable capital structure & liquidity position. The ratings are also supported by the expected improvement in the company's business risk profile subsequent to the take-over by Hindalco Industries Ltd (rated `AAA/P1+' by Crisil due to the business synergies existing between Indal and Hindalco. The ratings also factor in the company's dependence on external sources for meeting a part of its metal requirements and the competitive pressures prevalent in the semi-fabs segment.