Fitch rates Eskay Knit BBB+(ind)

Fitch Ratings said it assigned Eskay Knit India Ltd. a BBB+(ind) national long-term rating and BBB+(ind) to the company's long-term bank loans aggregating Rs. 1.32 billion and to its cash credit limits of Rs. 1.2 billion, as well as an F2(ind) rating to its Rs. 40 million non-fund based limits.

The outlook is stable.

The ratings reflect the integrated nature of Eskay's operations from yarn to finished fabric, its focus on the more stable domestic textile market, long operating history and demonstrated growth over the past four years, Fitch said.

The ratings are constrained by an expectation of pressure on demand growth, lower prices due to increased competition and consequent margin pressures for the domestic textile sector, the agency said.

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