India Ratings and Research (Ind-Ra), a Fitch group company in its recent rating review has upgraded Cosmo Films (CFL) long-term credit rating to 'A+' from previous rating of 'A'. This is the second rating upgrade that company has received within a year's time.

The re-rating can be attributed to a host of internal and external drivers. The internal drivers include sustained efforts by the company to improve its manufacturing line efficiencies, reduction in variable costs such as power and increase in revenue contribution from higher margin value added (specialty) products. 

''The company has brought down its debt considerably (by Rs 1710 million) in the last 24 months whilst maintaining a robust liquidity position. Consistent deleveraging measures have been deployed to keep the debt to EBIDTA ratio below 2.25X.'' said Neeraj Jain, chief financial officer of the company. 

The rating up-gradation and a stable outlook granted by the agency imply that the company's financial outlook has improved and it is more competitive and attractive to investors.

Shares of the company declined Rs 0.1, or 0.02%, to trade at  Rs 409.40.  The total volume of shares traded  was  10,241 at the BSE (1.25 p.m., Friday).