India Ratings has assigned a Long Term Issuer Rating of IND BBB, with a Stable Outlook, to Pioneer Embroideries Limited (PEL). IND BBB/Stable rating reflects moderate safety and moderate credit risk. This marks the reinstatement of an Investment Grade Rating for the Company after a long gap. PEL has presence in two business verticals namely, Specialised Polyester Filament Yarn (SPFY) where it owns the brand “SILKOLITE”, and Embroidered and Laces (E&L), which also includes the iconic “HAKOBA” brand.
The new rating is for debt facilities amounting to Rs. 30.87 crores and exhibits stronger credit profile as against existing credit rating of CARE BB+. India Ratings, noted the improvement in the operational and financial performance of the Company for FY22. The agency expects the credit metrics to remain stable in the near term.