ICRA reaffirms A1+ rating to Rs 50cr CP prog of RSWM

New Delhi, July 3 (UNI) Credit rating agency ICRA has reaffirmed A1+ rating assigned to the Rs 50 crore commercial paper (CP) programme of Rajasthan Spinning and Weaving Mills (RSWM).

The rating re-affirmation takes into account RSWM's leading position in the domestic blended yarn industry, diversification into cotton yarn, and growing value-added portfolio (especially melange yarn and garments), resulting in improved profitability.

The rating also takes into account RSWM's ongoing capacity expansion cum modernisation plans, involving significant capital investments.

While most of the capital expenditure would be debt funded resulting in higher gearing, the company's continued cost reduction efforts and its diversified product portfolio,besides its contracting of long-term/low-cost debt (mostly under TUFS), provide comfortable debt coverage indicators.

UNI MQA DKS RN2043