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Shri Sakthi Papers India gets LBB from ICRA for bank facilities.

BANKING AND CREDIT NEWS-3 September 2010-Shri Sakthi Papers India gets LBB from ICRA for bank facilities(C)1994-2010 M2 COMMUNICATIONS

3 September 2010 - India's ICRA said it assigned an LBB rating to the INR62.9m (USD1.3m/EUR1m) fund-based term loans and INR45m cash credit facilities of local Shri Sakthi Papers India Private Ltd (SPPL).

The company is predominantly engaged in the production of printing and writing paper.

The outlook on the rating is "stable".

ICRA also assigned an A4 rating to the INR7.5m non-fund-based letter of credit and the INR1m bank guarantee facilities of SPPL.

The ratings are constrained by the highly fragmented nature of the industry with low entry barriers, modest scale of operations, inherent cyclicality of the paper industry and the weak financial risk profile characterised by high gearing and tight liquidity position.

The ratings, however, favourably factor in the positive demand outlook for Printing & Writing Paper (PWP) in the medium term, the healthy plant capacity utilisation and efficiency levels, established relationships with customers in southern India and the significant track record of the promoters in the paper industry.

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Publication:M2 Banking & Credit News (BCN)
Date:Sep 3, 2010
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