Fitch rates Punjab State Cooperative Milk Producers BBB(ind)

Fitch Ratings said it assigned Punjab State Cooperative Milk Producers' Federation Ltd. a national long-term rating of BBB(ind), along with a BBB(ind)/F2(ind) to its Rs.1.15 billion fund-based limits and Rs.200 million non fund-based limits.

The outlook is stable.

The ratings reflect the co-operative nature of the company's business model based on the "Anand" pattern, which envisages a three-tier milk procurement system at the village, district and state level, Fitch said.

The ratings also factor in its position as the leading milk marketing player in the State of Punjab and its wide geographical coverage, the agency said.

The ratings take into account its moderate links to the Government of Punjab, originating from its status as an apex milk marketing federation, Fitch added.

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