ICRA has downgraded Ola Cell Technologies’ rating from A3 to BBB- with a negative outlook, due to rising concerns about the financial health of its parent company, Ola Electric Mobility.
The rating agency said the downgrade reflects increasing competition and lower-than-expected profits in Ola’s electric vehicle segment. The company has been facing delays in achieving profitability.
Ola Cell Technologies, which is involved in battery cell manufacturing, also faces serious challenges in operations. These include risks related to production delays, demand uncertainty, and high raw material costs.
Key Highlights:
Rating downgraded: From A3 to BBB-Outlook: Negative
Reason: Weak credit profile of Ola Electric Mobility
Challenges: Competition, low profitability, demand and raw material risks
The downgrade could impact investor confidence and raise borrowing costs for Ola’s future projects in the EV and battery manufacturing space.
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