India Ratings and Research (Ind-Ra) has upgraded RSWM's long-term issuer rating to 'IND A+' from 'IND A'. The outlook is stable. The upgrade reflects Ind-Ra's expectation of an improvement in RSWM's financial profile in the near term, driven by the capex completion in FY15, no capex plans for FY16-FY17, a steady outlook on the margins and the containment of working capital cycle.

With the completion of capex for an additional spinning and weaving facility and backward integration, the company expects to generate a higher EBITDA from value-added products such as melange/dyed yarns/denim fabrics, and save costs.

The financial leverage remained high in FY15 which was expected by Ind-Ra due to continuous capex.

However, based on management's stated position of not considering any capex presently, Ind-Ra expects RSWM's financial leverage to improve below 3x in FY16 and below 2.5x in FY17.