Fitch rates Gopsons Papers loans BB(ind)

Fitch Ratings said it assigned Gopsons Papers Ltd. a national long-term rating of BB(ind), along with a BB(ind) rating to its outstanding term loans aggregating Rs.373.1 million, BB(ind)/F4(ind) to its fund-based working capital limits of Rs.210 million and BB(ind)/F4(ind) to its non-fund based working capital limits of Rs.220 million.

The outlook is stable.

The ratings reflect the company's consistent growth trend over the past five years, continuous investment in technology to reduce turnaround time and variable costs, moderate financial profile and established position in the printed products sector, Fitch said.

Key concerns include its declining profitability margins, worsening coverage ratios and increased financial leverage in the last two years, the agency said.

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