Fitch lowers Cromptom Greaves view to negative

Fitch Ratings said it revised Crompton Greaves Ltd.'s outlook to negative from stable.

Its national long-term rating also was affirmed at AA+(ind).

The outlook revision reflects the recent significant increase in the company's net financial leverage from 2012 levels. This is driven by a sharp rise in its debt levels amid the declining trend of its operating margins, Fitch said.

The agency said it believes that a significant revival in the company's profitability is unlikely in 2013.

The company's overseas operations are likely to remain impacted by the continued slowdown in the industrial and real estate sectors, the on-going sovereign debt crises in Europe and the social unrest in the Middle East and North Africa region, Fitch said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.