CRISIL has reaffirmed its ratings of ‘CRISIL BB+/Stable/CRISIL A4+’ for the bank facilities of Balaji Polysacks Pvt Ltd (BPPL).

The ratings continue to reflect BPPL’s above-average business risk profile marked by an established clientele. This rating strength is partially offset by BPPL’s small scale of operations in a highly fragmented high-density polyethylene (HDPE) bags industry and limited financial flexibility because of a small net worth.

Outlook: Stable

CRISIL believes that BPPL will benefit over the medium term from its promoters’ extensive industry experience and its established clientele. The outlook may be revised to ‘Positive’ in case of a substantial improvement in the company’s financial risk profile, supported by increasing scale of operations and improving profit margins. Conversely, the outlook may be revised to ‘Negative’ if the financial risk profile deteriorates on account of larger-than-expected debt-funded capital expenditure plan.