Credit rating agency, Credit Analysis & Research (CARE) has revised rating of Patspin India’s long term bank facilities worth Rs 220.43 crore to ‘B+’ from ‘B’. The rating agency has also revised rating of company’s Long term/ Short term bank facilities worth Rs 7 crore to ‘B+/A4’ from ‘B/A4’. Meanwhile, the rating agency has reaffirmed ‘A4’ rating to company’s short term bank facilities worth Rs 199.25 crore.
The revision in the long-term rating assigned to the bank facilities of Patspin India (PIL) takes note of improvement in the operational and financial performance of the company during FY14 (refers to the period April 1 to March 31). The ratings continue to be constrained by PIL’s volatile operating profit margins, highly leveraged capital structure and exposure to volatility in raw material prices.
Patspin India is manly engaged in manufacture and export of cotton yarn. The products include cotton yarn, processed yarn, knitted fabric, compact yarn and other speciality yarns.