Credit rating agency, CARE has revised rating of Bengal Tea & Fabrics’ long term bank facilities worth Rs 108.60 crore to ‘BBB’ from ‘BBB-’. The rating agency has also revised rating of company’s short term bank facilities worth Rs 8.50 lakh to ‘A3+’ from ‘A3’.
The revision in the ratings factors in improvement in the financial risk profile of Bengal Tea & Fabrics (BTFL) upon improvement in the operating performance of its textile division during FY14 (refers to the period April 1 to March 31) on the back of stable cotton prices and sustained demand for its yarn and fabrics.
Bengal Tea & Fabrics has interest in the business of Tea and Textiles. The tea estates of the company are situated in Upper Assam. The company also owns a composite textile mill, namely Asarwa Mills situated in Ahmedabad in the state of Gujarat.