India Ratings upgrades Cosmo Films to ‘IND A’
India Ratings and Research (Ind-Ra), a Fitch Group company in its recent annual rating review has upgraded Cosmo Films Ltd.’s (CFL) long-term credit rating to ‘IND A’ from previous rating of ‘IND A-’
The re-rating can be attributed to a host of internal and external drivers. The internal drivers include a slew of recent measures undertaken by the company to enhance its profitability. These included consistent efforts to improve the company’s export margins, manufacturing lines’ efficiency, USA based operations and rationalization on power & freight. “Overall, consistent deleveraging measures to keep the debt to EBIDTA ratio below 3X is evident from the fact that the company has brought down its debt considerably in the last 24 months by 1970 million.” said Neeraj Jain, Chief Financial Officer of the company.
The rating up-gradation and a stable outlook by the agency obviously imply that the company’s financial outlook has improved and it looks more competitive and attractive to investments. The company is potentially exploring and aiming for another rating upgrade in the near future
Appended below is the link to access the official release issued by India Ratings and Research (Ind-Ra) on their website.