Fitch rates Lambodhara Textiles loans BB(ind)

Fitch Ratings said it affirmed Lambodhara Textiles Ltd.'s national long-term rating at BB(ind), along with its Rs. 130 million fund-based working capital limits, enhanced from Rs. 100 million, at BB(ind)/F4(ind); Rs. 28 million non-fund based working capital limits, enhanced from Rs. 7 million, at BB(ind)/F4(ind); Rs. 137.9 million existing term loans at BB(ind).

The agency also said it assigned an expected rating of BB(ind) rating to the proposed Rs. 32.8 million term loans and an expected rating of BB(ind) to its proposed Rs. 73.5 million term loans.

The outlook is stable.

The ratings continue to reflect the company's 15-year operational track record in the domestic viscose yarn and polyester yarn markets, Fitch said.

The ratings are constrained by the relatively smaller scale of the company's operations and its low EBITDA margins of about 10% to 11% in 2010, the agency said.

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