Fitch cuts KLT Automotive view to stable

Fitch Ratings said it revised the outlook on KLT Automotive and Tubular Products Ltd.'s national long-term rating to stable from positive and affirmed the national long-term rating at BBB+(ind) and the short-term rating at F2+(ind). The agency also affirmed the long-term bank lines of Rs. 1.193 billion and Rs. 900 million of cash credit facilities at BBB+(ind) and short-term bank lines of Rs. 1.520 billion at F2+(ind).

The outlook change reflects the current slowdown in the domestic auto industry and the impact on KLT's future growth, adverse impact on its profitability and the consequent decline in its key credit metrics, Fitch said.

The current slowdown also is likely to increase the company's working capital cycle, the agency said, and could put pressure on short-term liquidity.

Fitch said it considers any deterioration in the net debt-to-EBITDA ratio to beyond 4.5x on a sustained basis as a negative rating factor.

© 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.