Fitch rates KLT Automotive loans BBB+(ind)

Fitch Ratings said it assigned KLT Automotive and Tubular Products Ltd. a national long-term rating of BBB+(ind) with a positive outlook.

The agency assigned BBB+(ind) ratings to KLT's Rs. 1.19 billion and Rs. 900 million credit facility ratings, as well as a F2+(ind) rating to its short-term debt of Rs. 1.52 billion.

Ratings reflect the company's established position as a niche player, as well as its sustained revenue growth and operating performance over the past five years, Fitch said.

Ratings also are supported by the company's proven track record in establishing and developing solid contractual relationships, the agency said.

Ratings remain constrained by the limited customer diversification at the main Chassis division and by KLT's high financial leverage in fiscal 2007, Fitch noted.

At fiscal 2007, total debt-to-EBITDAR ratio peaked at 4.3 times.

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