MUMBAI - Moody's Investors Service said it has confirmed the 'B1' corporate family rating of Novelis Inc, following the completion of the Canada-based aluminium producer's acquisition by Hindalco Industries, Asia's largest integrated aluminium producer.
Moody's also assigned a 'Ba2' rating to Novelis' new proposed 860 mln usd 7-year guaranteed senior secured term loan facility.
The ratings agency said Novelis' corporate family rating continues to reflect the company's strong position in the aluminium rolled products markets, with dominant positions in can sheet, transportation, construction and industrial, and foil products.
Moody's also noted the company's global presence, free cash flow generating capability, and debt reduction performance since its spin-off from Alcan.
However, the rating also reflects concerns over the likely impact on Novelis' cash flows if India-based Hindalco withdraws cash via upstream dividends to service its own debt burden, the rating agency added.
Novelis' ratings had been placed on review for possible downgrade when news of the acquisition broke.
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