India Ratings and Research (Ind-Ra) has upgraded CCL Products' (India) (CCL) Long-Term Issuer Rating to 'IND A+' from 'IND A'. The outlook is stable.

The upgrade reflects the improvement in CCL's credit profile in FY15, led by higher realisations and timely debt repayments. During FY15, net leverage (adjusted net debt/EBITDA) was 1.2x (FY14: 1.8x) while interest coverage (EBITDA/gross interest expense) was 12.6x (8.4x).

The company's revenue grew 23% yoy to 8.8 billion in FY15, underpinned by 19% volume growth and 3% growth in realisations. Stabilisation and therefore, higher capacity utilisation at its new plant in Vietnam were key to the revenue growth and to the increase in realisations.

Ind-Ra expects improved profitability, the lack of significant capex, and scheduled repayment of the term loan to drive net leverage to below 1.0x by FYE16.