Fitch rates Essar Telecom BBB+(ind)

Fitch Ratings said it assigned Essar Telecom Infrastructure Private Ltd. a national long-term rating of BBB+(ind).

The agency also assigned the company's Rs. 200 million cash credit facility a long-term rating of BBB+(ind) and a short-term rating of F2+(ind).

The outlook is stable.

The ratings reflect the stable and predictable cash flow generated by Essar Telecom's telecom towers business, the low working capital requirement of the business, the strategic importance of Essar Telecom to the telecom operations of the Essar Group and the company's experienced management, Fitch said.

The ratings are constrained by the company's high financial leverage and by its substantially lower tower base portfolio as compared to an operator-owned company, the agency said.

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