Fitch rates Shree Shyam Pulp loans BBB(ind)

Fitch Ratings said it assigned a national long-term issuer rating of BBB(ind) to Shree Shyam Pulp and Board Mills Ltd., along with a BBB(ind) to its term loans of Rs.803.6 million and fund-based working capital limits of Rs.670.3 million and an F2(ind) rating to its non-fund-based working capital limits of Rs.50 million.

The outlook is stable.

The ratings reflect the company's improved profitability thanks to efficient manufacturing processes, easy access to raw materials, focus on quality improvements and the strong growth in paper consumption in the country, Fitch said.

The ratings are constrained by the cyclical nature of the paper industry, the company's small size of operations, high level of financial leverage and limited focus on branding, the agency said.

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