Crisil upgrades credit rating of Cosmo Films

NEW DELHI: Packaging solutions provider Cosmo Films on Friday said its long-term credit rating has been upgraded by Crisil to AA- (stable) from A+.

The ratings agency has also upgraded its short-term credit rating to A1(+) from A1, Cosmo Films said in a statement.

Crisil has done the rating based on a total bank loan facility of Rs 1,250 crore.

"The ratings reflect a healthy business risk profile, supported by a strong market position across various commodity and speciality flexible packaging segments in the domestic and global markets, improving operating efficiency and a comfortable financial risk profile," said Crisil.

These strengths are partially offset by vulnerability to volatility in raw material prices and demand-supply dynamics, and to risks related to capital expenditure implementation and thereafter stabilisation of the additional capacity risk, it added.

Cosmo Films CEO Pankaj Poddar said, "The upgrade in credit rating reflects a healthy business profile supported by strong market position across various flexible packaging segments, specifically speciality films growth, improved operating efficiency and a strong financial profile."

Established in 1981, Cosmo Films manufactures speciality films for packaging, lamination, labelling and synthetic paper.