India Ratings has maintained stable rating on cotton textiles for FY18 on the back of good domestic demand, stable input prices and better capacity utilization. The credit rating agency has revised the outlook of cotton textiles from negative in FY17 to stable in FY18.
The agency also informed that healthy trade agreements with United States & Europe will help boost the export demand of the goods, and it will also lead to a surge in domestic demand for the sector.
India Ratings has also revised its outlook from negative for FY17 to stable in FY18 for synthetic textiles. An improvement in the credit profiles can be expected, as per the agency, led by low cotton stockpiles, limited capital investments and reduced costs of borrowing.