Crisil reaffirms Ciba Specialty Chemicals' CP rating

THE P1 PLUS rating assigned to the Rs. 30 crore commercial paper programme of Ciba Specialty Chemicals (India) (CSCL) has been reaffirmed for an enhanced amount of Rs. 50 crores by the Credit Rating Information Services of India (Crisil).

The rating reaffirmation factors in the company's diversified business profile, strong and established position in various business segments (additives, consumer care and colours), and favourable capital structure and interest coverage ratios. The rating also takes into account the benefits arising from the company's strong parentage (Ciba Speciality Chemicals, Switzerland). However, these factors are partly offset by the company's high reliance on outsourced products and its low operating profitability. The company's colours business has strengthened with the merger of Indo-Swiss Textile Chemicals (ISTCL) and Pigment Specialities India (PSIL). In future also, the company's business mix may reflect the impact of any restructuring activity undertaken by its parent.

CSCL, a 51 per cent subsidiary of Ciba Speciality Chemicals of Switzerland, is engaged in the businesses of dyes and pigments, anti-microbial chemicals, optical whiteners, textile and paper chemicals and polymer additives. During 2000-01, the company derived 55 per cent of its revenues from colours, 15 per cent from consumer care, 26 per cent from additives and 4 per cent from polymers. It reported a profit of Rs. 28.50 crores on a net sales of Rs. 480.4 crores during the period under review.

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