Fitch affirms 'F1+(ind)' rating to SRF Ltd

New Delhi, Sep 18 (UNI) Credit rating agency Fitch today affirmed the National Short-term 'F1+(ind)' rating to Rs 70 crore commercial paper/short-term debt programme of SRF Ltd (SRF).

The rating takes into account SRF's strong market position in its core businesses, diversified nature of operations enabling steady cash flow growth and comfortable debt protection measures.

The rating also reflects SRF's operational efficiencies, which coupled with compensation amounts received under the Montreal Protocol and recently through certified emission reductions (CERs), have aided profitability and supported the capital structure and debt protection measures.

SRF's packaging film business is making loss at present and is likely to face the same trend in the near future. Entry into the pharmaceutical chemical business entails additional risks for SRF, as it is a new entrant in a highly competitive industry.

SRF is a diversified company with domestic market leadership in NTCF, belting fabrics and refrigerant gases and has manufacturing facilities in the states of Madhya Pradesh, Tamil Nadu, Rajasthan and Uttranchal.

UNI SRS SBA RAI2010