Fitch lifts SREI debt to AA(ind)

Fitch Ratings said it assigned an AA(ind) national long-term rating and an F1+(ind) national short-term rating to SREI Equipment Finance Pvt. Ltd. (previously SREI Infrastructure Development Finance Ltd.), a 50/50 joint venture between SREI Infrastructure Finance Ltd. and BNP Lease Group.

The agency also upgraded to AA(ind) from AA-(ind) the Rs. 1 billion lower tier 2 subordinated debt transferred to SREI Equipment from SREI Infrastructure and affirmed SREI Infrastructure's national long-term rating at AA-(ind) and its Rs. 2 billion short-term debt at F1+(ind).

SREI Infrastructure's ratings were removed from Rating Watch evolving, and the outlook for the company and the joint venture is stable.

The agency said SREI Equipment's ratings are premised on its strong financial flexibility due to support from BNP Lease and are supported by the proven track record of existing management in equipment financing with a relatively low level of credit-loss, its strong track record in the infrastructure space and negligible leverage.

The ratings are constrained by the SREI Equipment's foray into businesses where disbursements have been limited in the past, Fitch said.

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