Fitch rates Bannari Amman loans BB-(ind)

Fitch Ratings said it assigned Bannari Amman Apparel Pvt Ltd. a national long-term rating of BB-(ind), along with a BB-(ind) rating to its term loans totaling Rs.576 million, BB-(ind) rating to its fund-based working capital limits totaling Rs.140 million and BB-(ind)/F4(ind) rating to its non fund-based limits totaling Rs.150 million.

The outlook is stable.

The ratings reflect the challenges the company faces in its initial years of operations and the likely financial, operational and marketing support its promoters will have to provide until it has a profitable and stable operational track record, Fitch said.

Penetration into high-value brands and products, where margins are relatively higher, also will remain a challenge, the agency said.

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