Fitch rates GSPC Gas A-(ind)

Fitch Ratings said it assigned GSPC Gas Co. Ltd. a national long-term rating of A-(ind), along with an A-(ind)/F1(ind) ratings to the company's fund-based working capital limits of Rs. 1.45 billion, as well as F1(ind) to its commercial paper/short-term debt program of Rs.350 million.

The outlook is stable.

The ratings are based on its presence in the fast-growing city gas distribution/ local gas distribution industry, high revenue growth and comfortable margins over the last two years and low working capital requirements, Fitch said.

The ratings are supported by the strong operational and financial linkages with GSPC Gas's parent company, Gujarat State Petroleum Co. and group company, Gujarat State Petronet Ltd., the agency said.

The ratings are constrained by a largely debt-funded huge capital expenditure plan that is underway, its high share of spot gas in the company's gas purchase mix and high revenue concentration in the ceramics industry, Fitch said.

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