Fitch rates Samtex Fashions

Fitch Ratings said it assigned Samtex Fashions Ltd. a national long-term rating of BB(ind), along with a BB(ind) rating on its long-term bank loans of Rs. 122.5 million, BB(ind)/F4(ind) ratings on its fund-based working capital limits of Rs. 230 million, BB(ind)/F4(ind) ratings on its non-fund based working capital limits of Rs. 65 million and stand-by limits of Rs. 59 million.

The outlook is stable.

The ratings are driven by the strong linkages with its wholly owned subsidiary, SSA International, Fitch said.

Rating constraints include declining revenues in the textile business since 2008, the agency said, and low margins in both textile and rice milling businesses.

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