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-CRISIL attaches BB- rating to Gangotri Paper Mills.

M2 EQUITYBITES-November 30, 2011--CRISIL attaches BB- rating to Gangotri Paper Mills(C)2011 M2 COMMUNICATIONS

30 November 2011 - CRISIL on Wednesday attached BB- ratings with a "stable" outlook to the INR50m (USD955,000/EUR 719,000) cash credit, INR335m term loan and INR25m proposed long-term bank loan of Indian kraft paper manufacturer Gangotri Paper Mills Pvt Ltd.

The rating highlights the solid foothold of the company's owners as well as the close ties it keeps with clients and suppliers, the rater said.

On a negative note, Gangotri has an average financial risk profile, small business size and it is exposed to customer concentration risk, which limits the rating, in the agency's view.

Any case of a substantial change in the profitability and working capital management or the undertaking of a large capex programme will be considered triggers for a potential outlook revision, CRISIL said.

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Publication:M2 EquityBites (EQB)
Date:Nov 30, 2011
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