Fitch affirms English Indian Clays

Fitch Ratings said it affirmed English Indian Clays Ltd.'s national long-term rating at A(ind), along with its Rs. 762.5 million existing long-term bank loans, enhanced from Rs. 694.49 million, at A(ind), Rs. 525 million fund-based working capital limits, enhanced from Rs. 375 million, at A(ind)/F1(ind) and Rs. 125 million non-fund based working capital limits, enhanced from Rs. 100 million, at A(ind)/F1(ind).

The outlook is stable.

The ratings continue to reflect the company's strong position in the domestic clay market, its access to raw materials and its strong and diversified clientele, Fitch said.

The ratings are constrained by its moderate market position and low operating margins in its starch business due to fluctuations in maize and tapioca prices and the end product prices, the agency said.

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