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-CARE rates Leiner Shoes' loans at A3.

BANKING AND CREDIT NEWS-December 15, 2011--CARE rates Leiner Shoes' loans at A3(C)2011 M2 COMMUNICATIONS

15 December 2011 - CARE on Wednesday set an A3 rating to the short-term loans worth INR162.5m (USD3.0m/EUR2.3m) of Indian group Leiner Shoes Pvt Ltd.

The rating benefits from the experience of the footwear group's promoters, its established track record and long-standing association with reputed global brands. Leiner Shoes' moderate liquidity position and capital structure also support the rating.

However, the modest scale of the group's operations, the vulnerability of its profit margin to currency fluctuations, the fragmented footwear sector and revenue concentration risk constrain the rating.

Future rating actions will be contingent on the company's ability to expand its operations, improve its profitability margin and maintain its leverage position.

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Publication:M2 Banking & Credit News (BCN)
Date:Dec 15, 2011
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