Mumbai : CARE Ratings, a leading credit rating agency in India, has reaffirmed the credit rating of Garware Polyester Limited as CARE A and upgraded the outlook to positive from stable.

The rating assigned to the bank facilities of Garware Polyester Limited (GPL) factors in the strength of GPL from its established track record of more than five decades in polymer value chain industry, diversified product portfolio with wide geographical coverage globally and integrated manufacturing facilities.

The ratings also continue to factor in the improvement in operating performance marked by consistently high capacity utilization level witnessed during last couple of years and improved focus on value added products translating into expansion in its operating profit margin (for FY20 and Q1FY21).

The rating has also taken cognizance of the fact that the leverage indicators continued to improve in FY20 on back of scheduled repayment of its debt obligations.

Commenting on the ratings upgrade Mr S.B Garware, Chairman GPL said, “This improved rating is a continued validation of GPL’s performance. CARE Ratings has taken into account the strong operating metrics and competitive strengths of GPL in the polyester industry.”

The long-term bank facilities Rs 369.81cr (enhanced from Rs288.97cr) is CARE A / Positive. For Short term Bank Facilities (Rs198.19cr) the rating is CARE A1.