Fitch affirms NIIT

Fitch Ratings said it affirmed NIIT Ltd.'s national long-term rating at AA-(ind), along with its outstanding Rs. 500 million long-term bank loans, enhanced from Rs. 81.94 million at AA-(ind), Rs. 1.6 billion non-fund based working capital banking lines, enhanced from Rs. 1.3 billion at AA-(ind)/F1+(ind), Rs. 1 billion fund-based working capital banking lines at AA-(ind)/F1+(ind), Rs. 1 billion long-term debt program at AA-(ind), Rs. 600 million short-term debt program at F1+(ind) and Rs. 600 million commercial paper program at F1+(ind).

The outlook is stable.

The program is carved out of the fund-based working capital banking lines, Fitch said.

The ratings continue to reflect its status as a pioneer and market leader in India's information technology training market, established brand name, first-mover advantage and wide training centre network, the agency said.

The ratings also take into consideration the huge growth potential of India's education sector and the increased government spending on this sector, Fitch said.

The ratings are constrained by NIIT's inability to increase student volumes as per plan in new business initiatives, which are still in investment mode and incurred operating losses in 2010, the agency said.

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