Fitch rates Lambodhara Textiles loans BB(ind)

Fitch Ratings said it assigned Lambodhara Textiles Ltd. a BB(ind) national long-term rating, along with a BB(ind) rating on its outstanding long-term bank loans of R.126 million and BB(ind)/F4(ind) ratings to the working capital limits of Rs.107 million.

The outlook is stable.

The ratings reflect the company's more than 15-year established track record in the viscose yarn and polyester viscose yarn domestic markets, Fitch said.

The ratings also reflect the strength of the company's relationships with customers, the agency said, and its niche position in the market with focus on value-added products.

The ratings are constrained by the smaller scale of operations, low EBITDA margins at about 11% and low levels of interest cover of about 2.2x, Fitch said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.