Fitch rates Shri Bajrang BBB+(ind)

Fitch Ratings said it assigned Shri Bajrang Metallics & Power Ltd. a national long-term rating of BBB+(ind), along with a BBB+(ind) rating to its Rs. 489.9 million long-term loans and its Rs. 900 million fund-based limits and a F2+(ind) rating to its Rs. 95 million non-fund based limits.

The outlook is stable.

The ratings factor in the company's integrated operations with its 100% holding, Shri Bajrang Power and Ispat Ltd., long-track record of its promoters in the steel business and its provisional consolidated financial performance in 2010, indicated by a net debt-to-EBITDA ratio of 3.1 times, Fitch said.

The ratings are constrained by the company's ongoing Rs. 3.92 billion expansion plan to increase its capacity for existing sponge iron, power and billets facilities, along with an installation of a coal washery, the agency said.

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