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RAPAPORT... CRISIL Ratings assigned a ''CRISIL A2+'' rating to the short-term bank facilities of Tribhovandas Bhimji Zaveri Ltd (TBZ) and reaffirmed its rating on the company’s long-term bank facilities at ''CRISIL A-/Stable.'' The bank loan facilities totaled $854 million (Rs. 4.62 billion). The ratings reflected TBZ’s established market position with a strong brand and a healthy financial risk profile that is marked by healthy net worth, low gearing and robust debt protection metrics, according to the agency. These rating strengths are partially offset by TBZ’s exposure to intense competition in India's jewelry industry and the large working capital requirements to inventory. The outlook could be revised higher, to ''Positive'' if TBZ records ''substantial and sustained improvement'' in revenue, according to CRISIL. Conversely, the outlook may be revised lower should a sales and profitability decline or if TBZ reports a lower-than-expected offtake from its proposed showroom expansion plans. TBZ operates 26 showrooms and plans to open 31 new showrooms in the next two years.
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