Fitch rates Eskay Knit India

Fitch Ratings said it assigned a rating of BBB+(ind) to Eskay Knit India Ltd.'s proposed issue of Rs.1 billion. The agency also affirmed its national long-term rating at BBB+(ind), along with the ratings on the company's long-term bank loans aggregating Rs.1.32 billion and cash credit limits of Rs.1.2 billion at BBB+(ind) and its Rs.40 million non-fund based limits at F2(ind).

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, its long operating history and demonstrated growth over the past four year, 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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