Fitch affirms Shriram Pistons

Fitch Ratings said it affirmed Shriram Pistons and Rings Ltd.'s national long-term rating at AA-(ind), along with its Rs. 300 million terms loans, reduced from Rs. 400 million at AA-(ind), Rs. 500 million fund-based working capital limits, enhanced from Rs. 430 million at AA-(ind), Rs. 900 million non-fund based working capital limits at F1+(ind) and Rs. 100 million commercial paper program, carved out of fund-based working capital limits, F1+(ind).

The ratings factor in the company's ability to consistently maintain strong operating profitability and comfortable financial leverage over the past eight years, Fitch said.

The company has established tie-ups with leading international technology providers, namely Kolbenschmidt, Riken Corp., Fuji Oozx and Honda Foundry, which ensured a strong association with original equipment manufacturers in the domestic and export markets, the agency said.

The company's financial leverage, which has remained moderate in the range of 1.6x to 1.9x for the past four years, further reduced to 1.1x in 2010, Fitch added.

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