Fitch rates Chemplast Sanmar loans BBB(ind)

Fitch Ratings said it assigned a national long-term issuer rating of BBB(ind) to Chemplast Sanmar Ltd., along with BBB(ind) ratings to its long-term bank loans aggregating Rs. 7.89 billion and its secured fund-based lines of credit totaling Rs. 600 million. Fitch also assigned an F2(ind) rating to the company's secured non-fund based lines of credit totaling Rs. 858 million and unsecured non fund-based lines of credit totaling Rs. 650 million.

The outlook is stable.

The ratings are underpinned by the company's established operating track record in the PVC/chlorochemicals industry and its recent capital expenditure initiatives with a cumulative outlay of Rs.10 billion that are expected to provide backward and forward integration benefits, Fitch said.

The ratings are constrained by the commoditized nature of the company's business, rendering it vulnerable to volatility in global petrochemical and feedstock prices, the agency said.

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