Fitch cuts Kitchen Appliances India to negative

Fitch Ratings said it revised Kitchen Appliances India Ltd.'s outlook to negative from stable and affirmed its national long-term rating at BBB(ind), along with its Rs. 1.75 billion fund-based cash credit limits at BBB(ind), Rs. 2 billion non-fund based limits at F2(ind) and Rs. 1.26 billion long-term bank loans at BBB(ind).

The negative outlook reflects a combination of the negative outlook on the company's parent, Videocon Industries Ltd. and an expectation that the company's leverage position could potentially deteriorate due to the substantial capital expenditure, Fitch said.

The rating also reflects its ownership of the Kenstar brand, which has shown reasonable growth over the past two years, the agency said.

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