Fitch rates Kutch Railway loans BB+(ind)

Fitch Ratings said it assigned Kutch Railway Co. Ltd. a BB+(ind) rating to its long-term project bank loans aggregating Rs.3,000 million.

The outlook is stable.

The ratings reflect the less-than anticipated revenues from Western Railway, a division of the government of India's key department, Indian Railways, Fitch said.

The ratings are constrained by the project's ramp-up difficulties and the underachievement of traffic forecasts, caused primarily by Western Railway's inability to supply an adequate number of diesel locomotives and capacity constraints in the Palanpur section of the railway network for carrying traffic through to northern India, the agency said.

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