Fitch: HPL Electric view positive

Fitch Rating said it revised the outlook on HPL Electric & Power Private Ltd. to positive from stable and affirmed its national long-term rating at BBB+(ind).

The outlook revision reflects the reduction in the company's overall receivable days to 113 in fiscal 2011 ended March from 145 in fiscal 2010, according to the agency.

Ratings reflect the company's established position and 18 years of experience in dealing with state power utilities, the agency said.

Ratings also reflect the company's product diversification over fiscal 2009 to fiscal 2011, the agency noted.

Ratings are constrained by the weak credit profiles of SPUs and the company's high net cash conversion cycle, Fitch said.

As of fiscal 2011, the company had a net-adjusted financial leverage of 2.95x.

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