Fitch affirms Officedge India

Fitch Ratings said it affirmed Officedge India Pvt. Ltd.'s national long-term rating at BB(ind).

The outlook is stable.

The affirmation reflects Officedge's continued comfortable credit profile and strong liquidity, the agency said.

In fiscal 2011, the company's financial leverage, of total adjusted debt to op. EBITDAR, improved to 0.4x from 1.5x in fiscal 2010, Fitch said.

The ratings also reflect Officedge's standing as a supplier of specialty chemicals to Hindustan Unilever Ltd. as well as strong credit quality and demonstrated record of timely payments, the agency said.

The ratings also benefit from limited inventory risk.

The ratings remain constrained by the high customer concentration risk, with Hindustan Unilever (AAA(ind)/stable) being Officedge's only customer, and the absence of any formal agreement between the companies, the agency noted.

The ratings are also constrained by the low entry barriers in the domestic chemical industry and Officedge's low operating EBITDA margins, Fitch said.

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