Credit rating agency, CARE has reaffirmed ‘BB+’ rating to Kandagiri Spinning Mills’ long term bank facilities worth Rs 65.81 crore which was reduced from Rs 69.58 and ‘A4+’ rating to company’s Short term Bank Facilities worth Rs 9.70 crore. The rating agency has also reaffirmed ‘BB+/ A4+’ rating to company’s Long/Short term Bank Facilities worth Rs 9.40 crore.
The ratings assigned to the bank facilities of Kandagiri Spinning Mills (KSML) continue to be constrained by the high, albeit improved overall gearing and marginal debt service parameters of the company during FY14 (refers to the period April 1 to March 31).
Kandagiri Spinning Mills is engaged in textile spinning with an aggregate capacity of 67,388 spindles (as on March 31, 2014) spread across three units in Salem. All units have the capacity to manufacture cotton yarn of various counts.