FITCH Ratings India Private Limited has assigned an F1+ to the Rs. 50 million Commercial Paper programme of Raychem RPG Limited (RRL).

The rating indicates very high certainty of timely payments. Liquidity factors, including internal operating factors, and access to alternative sources of funds, are excellent and supported by good fundamental protection factors. Risk factors are minor.

The rating takes into account the strong position of Raychem RPG Limited as a supplier of technologically superior cable jointing kits to the power cable and telecom cable sector. Raychem RPG Limited enjoys market shares of 20% in power cable jointing kits and 12% in telecom cable (copper cable) jointing kits. It is also the market leader in the design and supply of heat tracing systems (market share 60%).

Raychem RPG Limited has strong backing of Tyco International, its joint venture partner holding 50% of equity. Raychem Corporation (the earlier joint venture partner of Raychem RPG) was taken over by Tyco International Ltd. in 1999. Tyco International has presence in over 80 countries and operates in varied segments like telecommunication & electronics, healthcare & specialty products and fire & security services. Tyco provides raw materials and technological support to Raychem RPG Limited. Raychem RPG Limited is also an important sourcing centre for requirements of various divisions of Tyco. Tyco has identified Raychem RPG Limited to exclusively market some of its products in South East Asian markets, in preference to the other joint ventures of Tyco in this region.