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RAPAPORT... CARE Ratings reaffirmed its single A minus (A-) rating on the approximately $69.7 million (Rs. 425 crore) bank facilities of Suashish Diamonds Ltd. The rating reflected the diamond firm's extensive industry experience, healthy financial risk profile that is marked by a healthy net worth, a comfortable overall gearing and robust debt protection metrics, according to CARE's statement. The rating also favored healthy operational efficiencies supported by Suashish's status as a De Beers sightholder. However, the rating was offset by the firm's substantial investment exposure to group companies, declining sales trends over the past three years, susceptibility of margin movements due to foreign currency-exchange rates, strong competition and subdued demand for cut and polished diamonds. Suashish Diamonds is a flagship company of Suashish Group, which was incorporated in 1988. Suashish was delisted from the Bombay Stock Exchange in June.
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