CARE reaffirms the ratings assigned to Birla Cotsyn bank facilities

Credit rating agency CARE has reaffirmed the ‘CARE BBB-‘ratings assigned to Birla Cotsyn (BCIL) long-term bank facilities for Rs 198.07 crore.

The agency has also reaffirmed the ‘PR 2’ ratings assigned to BCIL’s short-term bank facilities for Rs 7.50 crore.

The ratings continue to be constrained by delay in project implementation, low debt coverage indicators, low profit margins and predominantly trading nature of operations. The ability of BCIL to improve its margins in the scenario of volatile cotton prices, optimally utilize its expanded capacities remains the key rating sensitivities.

BCIL produces high quality synthetic, blended ring spun yarns for usage in woven and knitted fabrics, textiles, blankets, towels, upholstery, furnishings, curtains, bed sheets, made-up and industrial fabrics.