Credit rating agency, Credit Analysis & Research (CARE) has revised rating of Star Paper Mills’ long term bank facilities worth Rs 19 crore to ‘BB-’ from ‘B+’. The rating agency has reaffirmed ‘A4’ rating to the company’s short-term bank facilities worth Rs 10 crore.
The revision in the long-term rating of Star Paper Mills is on account of improvement in the operational performance of the company in M9FY15. However, the rating continues to be constrained by volatile raw material price and dependence on grid for power leading to higher cost.
Star Paper Mills produces a wide range of Industrial, Packaging and Cultural Papers catering to almost all segments of the market. The company sells its paper under ‘Star Brand’ with a distribution network throughout the country besides exporting products to neighboring countries.
