RATING Agency Malaysia Bhd (RAM) has accorded long- and short-term ratings of A1 and P1 to KVC ELECTRIC (M) SDN BHD'S proposed seven-year RM80mil commercial papers/medium-term notes programme (CP/MTN).
RAM said in a statement the CP/MTN would carry a corporate guarantee from KVC's holding company, ATIS Corp Bhd.
“As KVC contributes close to 90% of the group profit and cash flow, the assigned ratings essentially mirror ATIS' business and financial profiles,” it said.
The ratings are premised on its fairly resilient business profile, supported by its wide distribution network, extensive product range, broad supplier and customer base and sound inventory management.
The ratings also recognise the challenges ATIS faces, particularly on competition-related issues.
Principally, ATIS Group is involved in the distribution and supply of industrial electrical, control and automation, pneumatic, mechanical and other industrial products.
Last month, ATIS completed its acquisition of R&R Group, a group with a similar business model as KVC. – Bernama