Ratings agency Fitch has assigned low default risk with a stable outlook on the national long-term rating of fibre glass manufacturer Owens-Corning India on the back of the company's strong financials and its position as a leading player in its sector.
"Fitch Ratings has assigned Owens-Corning (India) Pvt Ltd (OCIL) a national long-term rating of 'AA(ind)'. The outlook is stable," the agency said in a statement.
It said that ratings reflect OCIL's position as India's largest fibreglass manufacturer for composites, with a total capacity of 52,000 tonne per annum and a domestic market share of over 50%.
"The ratings also reflect OCIL's strong liquidity position driven by its positive free cash flows and liquid cash balances," Fitch said.
An 'AA' national rating denotes expectations of very low default risk relative to other issuers or obligations in the same country.
Fitch has also assigned low-default risk on OCIL's Rs 65 crore long-term and short-term working capital facilities.
It said that OCIL has maintained high EBIDTA margins of 28-30% consistently during the last three fiscals.