Fitch affirms Uttam Galva

Fitch Ratings said it affirmed Uttam Galva Steels Ltd.'s national long-term rating at A(ind), along with its Rs. 2 billion non-convertible debenture program at A(ind), Rs. 17.23 billion long-term debt at A(ind), Rs. 4 billion fund-based working capital limits at A(ind)/F1(ind), Rs. 19.05 billion non-fund based working capital limits at F1(ind) and Rs. 2 billion standby limits at F1(ind).

The outlook is stable.

The affirmations reflect the improvement in the company's profitability in 2010, Fitch said.

The ratings also consider its market position as one of the leading producers of galvanized and cold-rolled products, its demonstrated track record in terms of growth and margins and its diversified customer profile, the agency said.

The ratings remain constrained by the company's lack of backward integration, exposing the company to fluctuations in steel prices, Fitch said.

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