Credit rating agency, ICRA has reaffirmed the rating of Rs 3.79 crore term loan facilities of AVT Natural Products at LBBB+. The outlook on the long term rating is stable. The rating agency has also reaffirmed the short-term rating assigned to the Rs 51.00 crore fund-based and Rs 13.87 crore non-fund based bank facility of the company at A2+.
The reaffirmation of the ratings factors in the growth witnessed in the company’s operating income and profits during 2010-11. The improvement was on the back of favourable marigold flower arrivals during the year, which helped the company meet its commitments to Kemin industries Inc, USA (Kemin), the company’s largest customer.
AVT NPL is in the business of solvent extraction with marigold oleoresins, spice oleoresins and processed tea as principle products lines. The company is a large exporter of marigold oleoresins and has entered into a long term exclusive supply agreement with Kemin industries Inc, USA.
