Credit rating agency, Fitch Ratings has upgraded Xpro India (Xpro) National long-term Rating to ‘BBB (ind)’ from ‘BBB-(ind)’. The outlook is stable.
The rating agency has also upgraded rating of long-term bank loans of Rs 63.50 crore (enhanced from Rs 40.54 crore) to ‘BBB (ind)’ from ‘BBB-(ind)’; upgraded rating of fund-based working capital limits of Rs 33.85 crore (enhanced from Rs 30.85 crore) to ‘BBB (ind) / A2(ind)’ from ‘BBB-(ind)/ A3(ind)’; upgraded rating of non-fund-based working capital limits of Rs 28.47 crore (enhanced from Rs 26.30 crore) to ‘A2(ind)’ from ‘A3(ind)’ and also upgraded rating of commercial paper programme (within fund-based working capital limits) of Rs 10 crore to ‘A2(ind)’ from ‘A3(ind)’.
The upgrade reflects Xpro improving credit profile led by sustained improvement in leverage (net debt to EBITDA) - 1.7x in FY11 (FY10: 2.7x; FY09: 3.6x). This improvement is driven by expanding EBITDA from strong revenue growth in FY10 and FY11.
Xpro India is a diversified multi - divisional, multi - Location Company with a strong commitment to the polymer processing industry. Xpro India has a product portfolio consisting of BOPP films, coex cast films, coex sheets, synthetic resins, thermoset moulding materials and cotton yarn.
