The re-rating can be attributed to a host of internal and external drivers. The internal drivers include a slew of recent measures undertaken by the company to enhance its profitability. These included consistent efforts to improve the company’s export margins, manufacturing lines’ efficiency, the US-based operations and rationalisation on power and freight.

“Overall, consistent deleveraging measures to keep the debt to EBIDTA ratio, below 3X is evident from the fact that the company has brought down its debt considerably in the last 24 months by 1970 million,” said Neeraj Jain, chief financial officer of the company.

The rating up-gradation and a stable outlook by the agency obviously imply that the company’s financial outlook has improved and it looks more competitive and attractive to investments. The company is potentially exploring and aiming for another rating upgrade in the near future.

Established in 1981, Cosmo Films is one of the global leaders and manufacturers of BOPP Films. It is the largest exporters of BOPP films from India and largest manufacturer of thermal lamination films in the world. Company’s products make their way into flexible packaging, labels and lamination industry.