India Ratings & Research (Ind-Ra) has assigned RSWM a long-term issuer rating of 'A'. The outlook is stable.

RSWM is one of India’s top three yarn manufacturers by revenue and spindlage, with an operational track record of over five decades and a strong marketing network. The company is also well diversified by geography, customers and products.

RSWM's operating margins are likely to remain stable, driven by its superior product mix in a semi-commoditised industry, benefits of centralised sourcing and 100% hedging of forex costs. There was minimal forex gain/loss in the last two years. Moreover, the company is taking steps towards backward integration into recycled polyester staple fibre (RPSF) and a long-term hedge against power costs through long-term power purchase agreements with a group concern.