CRISIL assigns ‘B+/Stable’ rating to Delhi Diamonds Pvt Ltd

As reported on its website, CRISIL ( Credit Rating Information Services of India Limited) has allotted its ‘B+/Stable’ rating to Delhi Diamonds Pvt Ltd’s (DDPL’s) cash credit facility. This rating, as the agency explains, speaks of DDPL’s exposure to risks in the start-up phase of its operations, intense competition in the diamond trading and jewellery industry, expected weakening in its financial risk profile, and volatility in raw material prices.

CRISIL also informs that the rating weaknesses are somewhat offset by the benefits that DDPL derives from its promoters’ experience in the gems and jewellery industry, and low debtor default risk.

DDPL was incorporated in March 2010, and delves in trading of polished diamond and diamond jewellery and manufacturing diamond-studded jewellery. At present its operations span only within the Indian domestic market, with a clientele base of retailers and wholesalers in North India.