Fitch cuts KLT Automotive to D(ind)

Fitch Ratings said it downgraded KLT Automotive and Tubular Products Ltd.'s national long-term rating to D(ind) from BBB+(ind) and reassigned it a rating of BB(ind) based on its revised credit profile. Fitch also said it downgraded its long-term debt totaling Rs. 1.19 billion to D from BBB+(ind) and reassigned a BB(ind) rating; cash credit facility of Rs. 1.2 billion to D from BBB+(ind) and reassigned a BB(ind) rating; and non-fund based working capital loans of Rs. 1.12 billion to F5(ind) from F2+(ind) and reassigned a rating of F4 (ind).

The outlook is stable.

The downgrades reflect Fitch's treatment of KLT's financial restructuring with banks as "coercive," the agency said.

Fitch noted that the restructuring has not resulted in significant impairment of the contractual terms for KLT's creditors.

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