RAM Ratings assigns Sierra Cables BBB rating

In an initial rating, RAM Ratings has assigned Sierra Cables PLc a long-term corporate rating BBB (triple B) with a stable outlook and a short term rating of P3. The rating reflects a moderate capacity to meet financial obligations.

The entity is more likely to be weakened by adverse changes in circumstances, economic conditions and operating environments than those in higher rated categories. This is the lowest investment-grade category, RAM Ratings stated.

Having assigned the rating RAM Ratings will keep the company under surveilance  and has to be kept informed of material events which affect the company such as a change in ownership composition over 5%, change in senior management positions and board, acquisitions and mergers and commencement or discontinuation of products or businesses.

They should also be informed of new credit lines or withdrawals of such lines, new issues of shares, debentures or debt or equity instruments and large investmenst or disposals which exceed 10% of the shareholders’ funds.

An annual review will be carried out in September 2012.