Fitch rates Chemrow B+(ind)

Fitch Ratings said it assigned a national long-term rating of B+(ind) to Chemrow India Pte. Ltd. and B+(ind)/F4(ind) ratings to its Rs. 125 million non-fund-based working capital limits.

The outlook is stable.

The agency said the ratings are based on Chemrow's more than a decade of experience in polymers for the shoe industry, moderate working capital cycle, long-term established relationships with its customers, continued profitability since 2006 and low-but-positive free cash flows during 2009 and 2010.

The ratings are constrained by Chemrow's small size of operations, thin margins as typically witnessed in trading businesses and exposure to volatility in polymer prices, which are in turn dependent upon crude oil prices, Fitch said.

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