Credit rating agency, ICRA has upgraded ‘BB-’ rating to Indo Rama Synthetics’ Term Loans worth Rs 38 crore which was enhanced from Rs 20.50 crore. The rating agency has also upgraded BB-/A4 rating to the company’s Fund-based and Non-fund based Limits worth Rs 717.0 crore. Meanwhile, the rating agency has assigned BB-/A4 rating to the company’s Proposed Limits worth Rs 35 crore.
The revision in the ratings improved liquidity position of IRSL due to initiatives taken by the company, which include increase in capacity utilisation levels due to improved raw material (especially PTA) supplies, renegotiation of PTA prices with one of the leading supplier and correction in mismatch of long-term and short-term finances.
Indo Rama Synthetics (IRSL) has been in the polyester business since 1989. The company expanded its capacities of partially oriented yarn (POY) and polyester staple fibre (PSF) in late 1990’s and FY 2007 to support the growth in volumes, and is currently the second largest polyester producer with aggregate capacity of 610,050 MTPA of POY, PSF, fully drawn yarn (FDY) and polyester (PET) textile grade chips and 96,544 MMTPA capacity of drawn texturised yarn (DTY).
