Credit rating agency, ICRA has revised the rating of Rs 30 crore commercial paper/short term debt programme of Liberty Shoes to A2 from A2+.
The revision in rating takes into account the continued pressure on the company’s financial metrics driven by increase in raw material prices, high competitive intensity in the industry, high working capital intensity of the business and subdued performance of its retail venture.
Liberty Shoes has been engaged in the business of manufacturing and selling leather and non-leather footwear since 1993-94. The company has a manufacturing capacity of 106 lakh pairs of shoes (leather and non-leather) per annum. The production facilities of the company are located at Karnal (Haryana), Ponta Sahib (Himachal Pradesh) and Roorkee (Uttaranchal).
