CRISIL assigns \'P4+\' rating to Rotomac Polymers\' bank facility

CRISIL has assigned "˜P4+' to the letter of credit facility of Rotomac Polymers Pvt Ltd (RPPL), which is a part of the Rotomac group. The rating reflects Rotomac group exposure to significant debtor risk, with unstable customer and product profile

CRISIL has assigned ?P4+? to the letter of credit facility of Rotomac Polymers Pvt Ltd (RPPL), which is a part of the Rotomac group. The rating reflects Rotomac group exposure to significant debtor risk, with unstable customer and product profiles, and to risks related to volatility in foreign exchange (forex) rates. The rating also factors in Rotomac group?s moderate financial risk profile, marked by substantial total outside liabilities. These weaknesses are partially offset by the group?s established market position in the writing instrument (pen) industry and low inventory risk in the trading business.

For arriving at the ratings, CRISIL has combined the business and financial risk profile of RPPL, Rotomac Global Pvt Ltd (RGL) and its subsidiary Crown Alba Writing Instruments India Pvt Ltd (Crown Alba), Kothari Food and Fragrances (KFF), Rotomac Exports Pvt Ltd (REL) and Rotomac Exim Pvt Ltd (REPL). This is because these entities, collectively referred to herein as the Rotomac group, are in the same line of business, and have a common management, and the same suppliers and customers.