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-Fitch rates Tushar Fabrics at B+(ind).

BANKING AND CREDIT NEWS-March 22, 2011--Fitch rates Tushar Fabrics at B+(ind)(C)2011 M2 COMMUNICATIONS

22 March 2011 - Fitch assigned on Tuesday a national long-term rating of B+(ind) with a "stable" outlook to Indian denim fabrics trader Tushar Fabrics Pvt Ltd (TFPL).

At the same time, the service attached a B+(ind) rating to the company's INR200m (USD4.4m/EUR3.1m) fund-based working capital limits.

The ratings are supported by the relatively long experience of TFPL's promoters in the country's denim fabrics trading business, but also factor in the company's strained financial profile, chiefly due to the working capital-intensive nature of its business, the agency said.

Any deterioration in TFPL's liquidity, triggered by margin pressures or a rise in working capital requirements, as well as a sustained net leverage of over 8.5x, could result in a negative rating action. Conversely, a stable growth in revenues, strong profitability and better working capital management, leading to a net leverage of below 7x, would be considered positive rating drivers.

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Publication:M2 Banking & Credit News (BCN)
Date:Mar 22, 2011
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