ICRA has upgraded the long term rating of Mirza International Limited (MIL) from LBBB+ (pronounced as L triple B plus) to [ICRA]A- (pronounced as ICRA A minus) for Rs. 220.0 crore fund based limits. The rating carries a stable outlook. The rating upgrade takes into account MIL‘s improved financial risk profile characterized by strong revenue growth and healthy internal accrual generation resulting in strong debt protection metrics of the company. Further, the rating continues to derive support from MIL‘s experienced promoters; its integrated manufacturing operations which increase its cost competitiveness and its stable and reputed customer base. However, the rating is constrained by high working capital intensity of MIL‘s operations which coupled with debt funded capital expenditure has resulted in relatively high gearing for the company. The rating is also constrained on account of high competitive pressures in the leather footwear industry; MIL‘s vulnerability to adverse movements in exchange rate and raw material prices and changes in duty drawback rates which can affect its profits negatively. While upgrading the rating, ICRA has taken note of the current precarious economic scenario in the European nations which forms the main export market for MIL; however, comfort has been drawn from the stable and reputed client base of the company.