Ratings agency Fitch has assigned low default risk with a stable outlook on the national long-term rating of fibreglass manufacturer Owens-Corning India on the back of the company“s strong financials…
Ratings agency Fitch has assigned low default risk with a stable outlook on the national long-term rating of fibreglass manufacturer Owens-Corning India on the back of the company“s strong financials and its position as a leading player in its sector. The outlook is stable, the agency said in a statement. It said that ratings reflect OCIL“s position as India“s largest fiberglass manufacturer for composites, with a total capacity of 52,000 tonne per annum and a domestic market share of over 50%. According to Fitch, the ratings also reflect OCIL“s strong liquidity position driven by its positive free cash flows and liquid cash balances. An AA“ national rating denotes expectations of very low default risk relative to other issuers or obligations in the same country. OCIL was also assigned low-default risk on its INR 65 crore long-term and short-term working capital facilities. OCIL has reportedly maintained high EBIDTA margins of 28-30% consistently during the last three fiscals.