Fitch gives Sree Karpagambal BB(ind)

Fitch Ratings said it assigned Sree Karpagambal Mills Ltd. a national long-term rating of BB(ind).

The outlook is stable.

According to Fitch, the ratings are constrained by the commodity nature of the company's business, its high working capital requirement, volatility in raw material prices and the exposure of the textile industry to regulatory actions.

The ratings, however, draw strength from Sree's long track record of manufacturing yarn and cloth and its moderate credit metrics, with financial leverage of 3.72x and interest coverage of 4.69x, the agency added.

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