S&P assigns BB- ratings to Sintex, withdraws it later

S&P Global Ratings on Monday affirmed its speculative grade on the long-term corporate credit rating of Indian plastics and textiles firm Sintex Industries but withdrew it on the company's request.

S&P Global Ratings had assigned 'BB-' Sintex Industries long-term corporate credit rating.

"We then withdrew the rating at the company's request. At the time of withdrawal, the outlook was stable," S&P Global Ratings said in a statement.

It did not specify the reasons for the company's request to withdraw the ratings.

S&P said Sintex's business and financial performance in financial year (FY) 2015-16 was broadly in line with its expectation. The company completed the first phase of its textile capacity expansion in the first quarter of FY17, and has commenced the second phase.

"We believe this will strengthen the company's business position in textiles over the next three to five years," it said.

The company's management plans to spin off its plastics division into a separate company in an internal reorganisation of its corporate structure.

"We believe that the spin-off won't affect the company's overall credit profile immediately because the process, which requires approvals from shareholders, creditors, and the Indian courts, could take more than a year to complete," the rating agency added.

Also, the final details of the proposed transaction are yet to emerge, it said.

Shares of Sintex Industries were trading at Rs 83.30 apiece in the afternoon trade, up 0.30 per cent from the previous close on the BSE.