Fitch rates Naga loans BBB-(ind)/'F3 (ind)

Fitch Ratings said it assigned BBB-(ind) to Naga Ltd.'s national long-term rating, to its fund-based working capital limits of Rs. 300 million and to its non-fund based limits of Rs. 200 million, as well as to its term loans outstanding of Rs. 411.24 million.

The outlook is stable.

Ratings reflect Naga's promoter's experience in the flour milling industry, its long track record and leading market position in the state of Tamil Nadu, according to the agency.

Ratings are constrained by Naga's moderately higher levels of leverage with a debt-to-EBIDTA ratio of 4.19x for fiscal 2009, Fitch said.

Ratings are moderated by the fragmented and competitive nature of the flour milling industry and susceptibility to agro-climatic risks and government regulations, the agency noted.

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