Fitch: Shetron, loans BB(ind)

Fitch Ratings said it assigned Shetron Ltd. a national long-term rating of BB(ind), along with a BB(ind)/F4(ind) rating on its 237.5 million fund-based working capital limits, BB(ind)/F4(ind) on its Rs. 350 million non-fund based working capital limits and BB(ind) on its Rs. 524.9 million term loans.

The outlook is stable.

The ratings reflect the moderate size of Shetron's operations and its established track record of more than two decades in India's metal packaging sector, Fitch said.

The company's ratings draw strength from its long-term business relationships with customers and strong position in the market for value-added products, the agency said.

The ratings are constrained by India's small and nascent processed food industry, dry cell battery industry's gradual recovery path following the global economic downturn and the pressure on operating margins arising from volatility in tin plate prices, Fitch added.

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