Fitch rates National Peroxide facility A-(ind)

Fitch Ratings said it assigned National Peroxide Ltd. an A-(ind) national long-term rating, A-(ind) rating to its Rs.140 million fund-based working capital facility and a short-term rating of F1(ind) to its Rs.105 million non-fund based working capital facility.

The ratings reflect the company's position as India's largest producer of hydrogen peroxide and the favorable demand outlook for its product over the short-to-medium term, Fitch said.

The ratings further reflect its comfortable cash flow generation driven by solid EBITDA margins of 25% to 30% over five of the past six years reflecting the stability of its business, the agency said.

The ratings are constrained by its small scale of operations, which reduces its operational and financial flexibility in light of current economic conditions, Fitch said.

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