ICRA assigns ‘A+’ rating to term loan facility of Rossell India

Credit rating agency, ICRA has assigned an ‘A+’ rating to the Rs 38 crore term loan facility of Rossell India. The outlook on the rating is stable. The rating agency also has the ‘A+’ and ‘A1+’ ratings outstanding for the Rs 38 crore fund based and non-fund based bank limits of the company.  The ratings primarily take into consideration the healthy financial profile of the company characterized by robust operating profitability, conservative capital structure and strong debt coverage indicators, and the increase in profits and cash accruals of the tea business during the financial year (FY14), on the back of firm tea prices and increase in tea production. Rossell India currently cultivates tea across 7 gardens after the acquisitions of two gardens in FY 2013. The company also operates 7 factories, one associated with each of the gardens. The gardens are located primarily in Upper Assam, with a total area of around 3,594 hectares.