India Ratings & Research (Ind-Ra) has upgraded Uflex long-term issuer rating to 'BBB+' from 'BBB'. The outlook is positive.

The upgrade reflects the successful completion of Uflex's overseas capex programme and the improvement in its scale and market position. The company's 30,000 tons per year biaxially oriented polyethylene terephthalate (BOPET) line costing USD 80 million in Kentucky, US has been operational since January 2013.

Uflex's ratings continue to reflect its established and leading position in the global and domestic BOPET films industry (third largest globally), and organised flexible packaging industry. The integrated nature of its operations, from design to manufacture, also continues to support the ratings.

Uflex is also present in stable end-markets such as food and beverage and FMCG sectors, catering to large multinational companies. The company benefits from its proximity to customers, assured delivery capability, savings in freight costs and geographic diversification, coupled with savings in anti-dumping duties.

Shares of the company declined Rs 2.6, or 3.48%, to settle at Rs 72.15. The total volume of shares traded was 19,372 at the BSE (1Wednesday).