Credit rating agency CARE has assigned BBB+ rating to Rs 8.65 crore long term bank facilities of National Plastic Industries (NPIL). The rating agency has also assigned A3+ rating to Rs 3.50 crore short term bank facilities of the company.
The ratings derive strength from the proven track record and experience of the promoters in the industry and well-established brand image. The ratings also consider comfortable profitability margins and moderate debt service coverage indicators.
NPIL is engaged in manufacturing of injection-moulded plastic products like furniture, storage and distribution and custom mouldings under the brand name of ‘National’. The products of NPIL can broadly be classified into furniture and household, with furniture segment forming around 80% of the total sales for FY11.