Samvardhana Motherson receives A rating from JCR for financial performance and acquisition strategy

In a press release, the Japan Rating Agency (JCR) said the decision, which is likely to be viewed positively by investors, was made by Samvardhana Motherson International Limited (SAMIL), an automotive component supplier, and assigned a long-term foreign currency rating of A with a stable outlook.

This gives SAMIL two notches above India’s sovereign rating (BBB+) by JCR, making it the highest-rated Indian company by the agency.

JCR highlighted SAMIL’s diverse customer base, global manufacturing footprint, strong partnerships with major OEMs and a history of strategic mergers and acquisitions (M&A) that have fueled growth and diversification as key factors behind the high rating. The stable outlook reflects JCR’s expectation of continued solid financial performance and adherence to prudent financial policies by SAMIL’s management.

The company added that the decision to adopt the rating comes after similar positive actions by Moody’s and Fitch.

The JCR press release specifically praised SAMIL’s M&A strategy, noting that the company had made acquisitions at reasonable prices and achieved synergies, which enabled both growth and financial discipline.