Fitch rates Parikh Fabrics D(ind)

Fitch Ratings said it assigned Parikh Fabrics Pvt. Ltd. a national long-term rating of D(ind), along with a D(ind) rating to its Rs. 220 million cash credit limits and Rs. 580 million term loans.

The ratings reflect the delay in the repayment of interest and principal for last 12 months due to its ongoing Rs. 825.9 million capital expenditure program to increase its capacities, Fitch said, coupled with pressure on receivable days.

Fitch said it will continue to monitor the progress of the company's capital expenditure plans and its ability to meet financial obligations.

Positive rating triggers include timely completion and stabilization of the project, which would result in regular interest and principal payments and an improved liquidity, the agency said.

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