Polyspin Exports Limited, a Rajapalayam-based textile company, announced on July 19, 2025, that CARE Ratings Limited has reaffirmed its credit ratings for the company’s banking facilities for the financial year ended March 2025.

As per the official communication to BSE Limited, Polyspin stated that its long-term bank facilities of ₹13.50 crore (reduced from ₹26.61 crore) have been reaffirmed at CARE BB+, and the outlook has been revised to ‘Stable’ from the earlier ‘Negative’. Meanwhile, the short-term bank facilities have been enhanced to ₹99 crore (up from ₹94 crore) and reaffirmed at CARE A4+. The total rated bank facilities now stand at ₹112.50 crore.

CARE’s rating report was based on a review of the company’s operational and financial performance for FY25, and it maintains the company’s standing as a moderate risk entity in terms of timely debt servicing capabilities.

Long-term Rating Details:

The reaffirmed CARE BB+ rating for long-term bank facilities indicates moderate risk of default. The improvement in the rating outlook from negative to stable signals a more positive view on the company’s ability to maintain financial discipline and manage its debt levels, backed by operational consistency.

Short-term Rating Summary:

The CARE A4+ short-term rating reflects adequate liquidity and manageable working capital cycles, though the risk remains higher in the short-term instrument category. The increase in short-term bank facilities from ₹94 crore to ₹99 crore suggests that the company is expanding its short-term funding lines, possibly to support exports or working capital needs.

🏭 Company Profile: Polyspin Exports Limited

Headquartered in Rajapalayam, Tamil Nadu, Polyspin Exports Limited is engaged in the manufacturing and export of polypropylene woven bags, fabric, and yarn. The company primarily caters to domestic and export markets for industrial packaging solutions. Over the years, it has built a steady export client base and continues to operate in a competitive textile segment.

The latest reaffirmation by CARE Ratings strengthens its creditworthiness and supports its ongoing banking arrangements.

📋 Credit Rating Summary Table

📄 CARE Ratings Disclaimer

CARE Ratings clarified that their credit ratings do not constitute recommendations to sanction, renew, disburse, or recall any bank facilities. The ratings represent their opinion on timely debt servicing capability and are subject to surveillance and review based on updated financial or operational information.

Users of the rating are advised to refer to CARE’s official website for the latest updates and disclosures. Also, CARE Ratings has reiterated that its ratings are applicable only to rupee-denominated instruments and exclude sovereign risk associated with foreign currency borrowings.

💬 Management Commentary

A. Emarajan, Company Secretary and Compliance Officer of Polyspin Exports, stated:

“We acknowledge CARE Ratings’ reaffirmation of our credit standing and are committed to further improving operational efficiency and financial discipline. The revision of outlook to stable reflects our continued efforts post-pandemic to stabilise margins and maintain strong banking relationships.”

🧮 Implications for Investors and Banks

For banks, the reaffirmation by CARE Ratings implies continued moderate confidence in the company’s credit profile, thus facilitating ongoing loan servicing and working capital limits.

For equity investors, although credit rating is not a direct indicator of stock price movements, stable credit ratings typically reflect better financial risk management, which could be beneficial in the long term.

🗂️ Regulatory Filing and Compliance

This update was filed under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. It complies with disclosure norms related to credit rating changes and ensures transparency for all market participants.

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