Fitch rates Savorit B-(ind)

Fitch Ratings said it assigned Savorit Ltd. a national long-term rating of B-(ind), along with B-(ind)/F4(ind) ratings on its fund-based working capital limits of Rs. 70 million and non-fund-based limit of Rs. 60.55 million and a B-(ind) rating on its outstanding term loans of Rs. 62.34 million.

The outlook is stable.

The ratings reflect the experience of Savorit's promoter in the flour milling and pasta industry, Fitch said, and its long track record in the Tamil Nadu market for wheat products and pasta products.

The ratings are constrained by Savorit's low levels of interest coverage and high levels of leverage with a debt-to-EBIDTA ratio of 7.08 times in 2009, the agency said.

The fragmented and competitive nature of the flour milling industry in India, susceptibility to agro-climatic risks and central and state government regulations also weigh on the company's ratings, Fitch said.

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