Company Background: Company specializes in the design, development, testing, manufacturing, and supply of precision-engineered systems and components for industrial gas turbines, aerospace, and the oil & gas sectors.
Problem:
Despite its strengths, the company faced challenges from customer concentration risk and a long operating cycle, resulting in a long-standing BB credit rating. This limited credit availability and increased interest rates, constraining financial flexibility.
Solution:
Our team conducted a detailed analysis of the company’s operations and identified several key strengths:
Strong Entry Barriers: High technical expertise and specialized knowledge limit new competitors, protecting the company’s market position.
Long-term Client Relationships: Trusted partnerships with major clients ensure reliable, recurring business.
Robust Credit Profile: Despite its smaller scale, the company’s stable financial foundation supported its investment-grade rating.
Impact:
The upgraded rating allowed the company to secure higher credit limits at lower interest rates, improving its financial position and enabling long-pending capital expenditure, paving the way for future growth.
