Fitch rates Winner Nippon, loan B(ind)

Fitch Ratings said it assigned Winner Nippon Electronics Ltd. a national long-term rating of B(ind), along with its outstanding Rs. 72.1 million long-term bank loans of B(ind), Rs. 60 million fund-based working capital limits of B(ind)/F4(ind) and Rs. 37.5 million non-fund based limits of F4(ind).

The outlook is stable.

The ratings reflect the company's small size of operations, limited track record of its promoters in domestic synthetic textile business and low capacity utilization in both its business segments, Fitch said.

The company's financial leverage remained high at 9.22x in 2010, essentially due to high unsecured debt of Rs. 167.8 million from its parent, Raglan Infrastructure Ltd., the agency said.

The ratings are further constrained by the company's dependence on polypropylene, which is highly commoditized and vulnerable to the input price fluctuations and low entry barriers for the industry.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.