Fitch lowers KS Oils

Fitch Ratings said it downgraded KS Oils Ltd.'s national long-term rating to BBB+(ind) from A-(ind) and revised the outlook to stable from negative.

The agency downgraded the rating of KS Oils' Rs. 2.75 billion long-term loans to BBB+(ind) from A-(ind) and affirmed the short-term rating assigned to its Rs. 4.4 billion short-term bank facility at F2+(ind).

The action follows KS Oils' Rs. 1.25 billion acquisition of an edible oil refinery from Ambo Agro Products and its revised capital expenditure plan envisaging a higher outlay, according to the agency.

The downgrade reflects increased risks on account of the company's entry into new areas such as wind energy, and the consequent execution risk, Fitch said.

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