Fitch rates Jubilant Organosys A+(ind)

Fitch Ratings said it assigned Jubilant Organosys Ltd. a national long-term rating of A+(ind) and assigned F1+(ind) national short-term ratings to its Rs. 1 billion commercial paper program and Rs. 1 billion short-term debt program. Both programs are carved out of fund-based working capital banking lines of the company.

Ratings assigned also include an A+(ind) rating to its outstanding long-term bank loans aggregating Rs. 5.04 billion, F1+(ind) to its non-fund based working capital banking lines of Rs. 3 billion, and A+(ind) and F1(ind) ratings to its fund-based working capital banking lines of Rs. 3 billion.

The outlook is stable.

The ratings reflect the company's healthy business profile, supported by its growing volumes and strong cash accruals, Fitch said. It benefits from its strong domestic position in certain industrial chemicals and custom research and manufacturing services, the agency said.

Rating concerns include its high financial leverage, aggressive inorganic growth strategy, price cyclicality of industrial chemicals and the volatility in raw material prices, Fitch said.

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