Life Care Distributors Private Limited get satisfactory rating from Care Nepal for short term and long term bank facilities worth Rs.1.45 Arba

CARE Ratings Nepal Limited (CRNL) has assigned rating of ‘CARE-NP BB+’ to the long term bank facilities worth NPR 267.25 Million and ‘CARE-NP A4+’ to the short term bank facilities worth NPR 1182.75 Million of Life Care Distributors Private Limited (LCD).

The ratings assigned to the bank facilities of LCD are constrained by working capital intensive nature of operations and high utilization of working capital limits, leveraged capital structure with moderate debt coverage indicators, exposure to volatile interest rates and foreign exchange fluctuation risk. The ratings also factors presence in fragmented industry with competition from both national and international players.

The ratings, however, derives strength from established and moderate track record of operations along with resourceful promoters and experienced management team in the related field, increasing scale of operations and profitability over the period, liquidity profile supported by liquid investments in listed shares and diversified distribution network and established brands.

Ability to profitably scale up the operations of the company and effective management of working capital with improvement in solvency position will remain the key rating sensitivities.

Life Care Distributors Private Limited (LCD) was registered as a private limited company on June 2011. LCD principally involves in import/ trading of FMCGs. Currently LCD is involved in supplying more than 110 varieties of products manufactured by 6 FMCG companies around the globe under more than 17 brands. For most of the products, the company is sole distributor in Nepal.

Source: Care Ratings Nepal