Icra has assigned A1+ rating to the Rs 10 crore commercial paper (CP) of Reebok India Company (RIC), indicating highest safety.
The rating takes into account the financial and technical support available to RIC from Reebok International Ltd, which holds 93 per cent of its equity capital.
The rating also factors in Reebok's established brand image in a steadily growing but competitive Indian footwear and branded apparel market. RIC's competitive strength lies in its product design ability (drawn from RIL), wide product range and expanding distribution network.
More From This Section
Reebok India Company (RIC) was set up in 1995 as a JV between Reebok International Ltd (80 per cent equity stake) and Phoenix Overseas Ltd (20 per cent for marketing fitness footwear and apparels in India. Since then RIL's shareholding in RIC has increased to 93 per cent.
Icra has also upgraded the rating assigned to the BOB Housing Finance Ltd's Fixed Deposit Programme from MAA to MAA+ and non convertible debenture (NCD) programme from LAA to LAA+. It has also upgraded the rating assigned to Rs 20 crore NCD programme from LAA to LAA+.
The revised ratings, indicating high safety, takes into account high growth in disbursements to low risk individual segment, low asset-liability mismatch risk, low cost of funds, low expense levels and relatively high profitability.
The rating agency has withdrawn the A1 rating assigned to Rs 10 crore CP Programme of Polyplex Corporation Ltd as there is no amount outstanding against the rated instrument.