Fitch rates Supreme Petrochem A-(ind)

Fitch Ratings said it assigned a national long-term issuer rating of A-(ind) to Supreme Petrochem Ltd., along with A-(ind) ratings to its long-term lines of credit totaling Rs. 366.4 million and to its outstanding long-term loans of Rs. 1.1 billion, and A-(ind)/F1(ind) ratings to its fund-based working capital limits of Rs. 250 million and to its non-fund based limits of Rs. 4.5 billion. The agency also affirmed its Rs. 200 million commercial paper/short-term debt program at F1(ind).

The outlook is stable.

The ratings factor in the company's strong market position in the domestic polystyrene market and relatively stable spreads between polystyrene and styrene monomer, its key raw material, Fitch said.

The ratings also take into account the company's increased focus on higher margin sales within the polystyrene market, the agency added.

The ratings are constrained by the cyclicality of the industry in terms of margins, Fitch said, although the past few years have witnessed stable margins for the sector as a whole.

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