ICRA has reaffirmed the long term rating of LBBB+ (pronounced L triple B plus) assigned to the Rs. 287.55 crore fund based facilities of Ind Swift Laboratories Ltd. (ISLL). The short term rating has also been reaffirmed at A2+ (pronounced A two plus) for Rs. 253.98 crore fund based and non fund based facilities of the company. The “Stable” outlook on the long term rating has also been reaffirmed.

The rating reaffirmation factors in the healthy growth in revenues from key products during 2009-10, the company's well diversified geographic mix, continuous efforts made towards increasing presence in the regulated markets and expansion of the product portfolio, diversified customer portfolio and experienced promoters. The rating, however, is constrained by the company's moderate financial profile with highly leveraged capital structure and stretched coverage indicators, aggressive debt funded expansion plans, commoditization of some of the existing products which is expected to put pressure on margins, limited presence in regulated markets and continued financial support to the group companies. The continued debt funded expansion plans may further stretch the company's capital structure and coverage indicators over the medium term. However, ICRA takes cognizance of the capital intensive nature of API industry and the company‟s need to undertake capital expenditure to support new product launches. The ratings also draw comfort from the company‟s steady revenue growth, healthy operating profitability and strong cash flows from operations.