Raymond hits two-year low

CARE revises the ratings assigned to the long term bank facilities and instruments of Raymond to AA- from AA.

Raymond Limited is trading lower by almost 4% at Rs 245 extending its last five days fall after the global rating agency CARE revised its rating assigned to the long term bank facilities and instruments of the apparel maker.

The stock has fallen 13% compared to 4% decline in benchmark Sensex in past six trading sessions on the Bombay Stock Exchange.

“CARE revises the ratings assigned to the long term bank facilities and instruments of Raymond to AA- (double A minus) from AA (double A),” CARE Ratings said in a press release.

The agency said the rating revision takes into account the operational performance during first nine months (April-December) of FY13 and deteriorating debt coverage metrics of the company.

The ratings however, are constrained due to the commodity price risk and foreign exchange fluctuation risk. The company’s ability to improve its profitability margins and debt coverage indicators amidst intense competition in the industry are the key ratings sensitivities, it added.