CRISIL has assigned its ?BB/Stable/P4+? ratings to the bank facilities of Polygon Chemicals Pvt Ltd (PCPL).The ratings reflect PCPL?s susceptibility to volatility in raw material prices and intense industry competition. These rating weaknesses are partially offset by PCPL?s above-average financial risk profile, marked by low gearing and satisfactory debt-protection metrics, and established client base.

Outlook: Stable

CRISIL believes that PCPL will continue to benefit from its established clientele and sufficient cash accruals, over the medium term. The outlook may be revised to ?Positive? if PCPL substantially scales up its operations, while maintaining its financial risk profile. Conversely, the outlook may be revised to ?Negative? if the company?s profitability shrinks or its financial risk profile deteriorates because of a stretch in working capital requirements or larger-than-expected debt-funded capital expenditure.