Credit Analysis & Research (CARE) has upgraded the long-term bank facilities rating of Super Spinning Mills from 'BB' to 'BB+' aggregating to Rs 359.9 million. CARE has also upgraded the short-term bank facilities rating from 'A4' to 'A4+' aggregating to Rs 600 million of the company.

CARE has also upgraded the long/ short-term bank facilities rating from 'BB/ A4' to 'BB+/ A4+' aggregating to Rs 1.10 billion of the company.

The revision in the ratings of Super Spinning Mills (SSML) factors in the improvement in the operational and financial performance during the six months period ended September 2013. The revision also takes note of improved liquidity position of the company consequent to augmentation of long-term funds during H1FY14.

The ratings remain constrained by the highly leveraged capital structure, working capital intensive nature of the operations and the vulnerability of SSML's profitability to volatility in the cotton and yarn prices.

The ratings, however, draw strength from the company's long track record of operations spanning for over five decades and the long-standing experience of the promoters in the textile industry.

Besides, the ratings also favourably consider the established presence of SSML in finer counts and specialized yarn segments as well as the long-standing relationship with its customers driven by its established brand identity and wide product offerings within the yarn segment.

Going forward, the ability of SSML to implement the modernization efforts within the estimated time and cost parameters, improve its profitability, rationalize its debt levels and effectively manage its power requirements will be critical to its prospects.

Shares of the company gained Rs 0.1, or 1.77%, to settle at Rs 5.75. The total volume of shares traded was 2,046 at the BSE (Thursday).