S&P rates Amira notes B-

Standard & Poor’s said it assigned a preliminary B long-term corporate credit rating to Amira.

The agency also said it assigned a preliminary B- rating to the proposed $225 million senior secured second-lien notes to be issued by Amira Nature Foods Ltd. and Amira I Grand Foods Inc.

The outlook is stable.

The ratings reflect the company’s weak business risk profile and aggressive financial risk profile, the agency said.

The ratings also consider the company’s relatively modest size, substantial concentration risk and lack of positive free operating cash flow projected over the next two years due to working capital outflow, S&P said.

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