Fitch affirms Century Textiles

Fitch Ratings said it affirmed Century Textiles and Industries Ltd.'s national rating on its commercial paper/short-term debt program at F1+(ind), following the increase of the program size to Rs.4,000 million from Rs.2,500 million.

The rating reflects the company's improvement in profitability and margins during the past two years, driven mainly by the upswing in the cement cycle coupled with stable margins from its paper business, Fitch said. The ratings also consider the significantly large capital expenditure plans drawn up by the company and the high cost structure of its cement division due to higher energy costs in comparison to its peers, the agency added.

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