Credit rating agency, Credit Analysis & Research (CARE) has revised rating of Supreme Tex Mart’s long term bank facilities worth Rs 342.53 crore to ‘BB’ from ‘BBB-’. The rating agency has also revised rating of company’s short term bank facilities worth Rs 140 crore to ‘A4’ from ‘A3’.
The revision in the ratings factors in deterioration in the liquidity profile of Supreme Tex Mart (STML) due to delay in realization of debtors, severe deterioration in profitability in FY14 (refers to the period April 1 to March 31 - audited) and losses incurred during Q1FY15 (unaudited).
Supreme Tex Mart is a textile player offering comprehensive range of yarns, fabrics and garments. The company has a manufacturing unit in Ludhiana, Punjab with an installed capacity of 45,648 spindles and 4080 rotors as on March 31, 2013.
