Fitch rates Metro Dairy BBB-(ind)

Fitch Ratings said it assigned Metro Dairy Ltd. a national long-term rating of BBB-(ind), along with a national long-term rating of BBB-(ind) on its outstanding long-term loans of Rs. 97.2 million, national long-term rating of BBB-(ind) on its sanctioned fund-based limits of Rs. 110 million and national short-term rating of F3(ind) on its sanctioned non-fund based limits of Rs. 10 million.

The outlook is stable.

The ratings reflect its position as one of the leading dairy companies in the organized sector in Greater Kolkata and its market leadership in ice creams, Fitch said.

The rating also reflects its assured supply of raw milk through the West Bengal Cooperative Milk Producers' Federation Ltd. for about 50% to 60% of its requirement, with the majority of supplies being made from the milk unions of West Bengal, the agency said.

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