November 08, 2012

Mumbai

Kitex Garments Limited

Ratings Suspended

Total Bank Loan Facilities Rated	Rs.1599.7 Million
Long-Term Rating	Suspended
Short-Term Rating	Suspended

(Refer to Annexure 1 for details on facilities)

CRISIL has suspended its ratings on the bank facilities of Kitex Garments Limited (KGL). The suspension of ratings is on account of non-cooperation by KGL with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, KGL is yet to provide adequate information to enable CRISIL to assess KGL’s ability to service its debt. The suspension reflects CRISIL's inability to maintain a valid rating in the absence of adequate information. CRISIL considers information availability risk as a key credit factor in its rating process and non-sharing of information as a first signal of possible credit distress, as outlined in its criteria ‘Information Availability Risk in Credit Ratings’.

About the Company

Set up in 1992 by Mr. Sabu M Jacob, KGL manufactures garments for infants and children, that are exported to mainly the US and Europe. Its manufacturing units in Alwaye (Kerala) have production capacity of 65 million pieces per year. KGL is a part of the Anna-Kitex group, promoted by Mr. M. C. Jacob. Group company, Kitex Childrenswear Ltd, manufactures garments for infants and children. KGL’s customers include Gerber International Inc, and Toys-R-US.

Annexure 1 - Details of various bank facilities

Current facilities			Previous facilities
Facility	Amount (Mln)	Rating	Facility	Amount (Mln)	Rating
Corporate Loan	85.9	Suspended	Corporate Loan	85.9	CRISIL BBB/Stable
Export Packing Credit	465	Suspended	Export Packing Credit	465	CRISIL A3+
Foreign Bill Purchase	140	Suspended	Foreign Bill Purchase	140	CRISIL A3+
Letter of Credit	125	Suspended	Letter of Credit	125	CRISIL A3+
Letter of credit & Bank Guarantee	100	Suspended	Letter of credit & Bank Guarantee	100	CRISIL A3+
Long-Term Loan	573.8	Suspended	Long-Term Loan	573.8	CRISIL BBB/Stable
Standby Line of Credit	110	Suspended	Standby Line of Credit	110	CRISIL A3+
Total	1599.7	--	Total	1599.7	--

Media Contacts	Analytical Contacts	CRISIL Rating Desk
Tanuja Abhinandan Communications and Brand Management CRISIL Limited Tel: +91-22- 3342 1818 Email: tanuja.abhinandan@crisil.com Shweta Ramchandani Communications and Brand Management CRISIL Limited Tel: +91-22- 3342 1886 E-mail: shweta.ramchandani@crisil.com	Subodh K Rai Senior Director - CRISIL Ratings Tel: +91-0124-672 2000 Email: subodh.rai@crisil.com Vasudevan R Director - CRISIL Ratings Tel: +91-44-6656 3100 Email:vasudevan.r@crisil.com	Tel: +91-22-3342 3047/3342 3064 Email:CRISILratingdesk@crisil.com

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Last updated: April 30, 2012

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