Fitch: SREI view to negative

Fitch Ratings said it revised SREI Equipment Finance Pvt. Ltd.'s outlook to negative from stable.

The agency also said it affirmed its national long-term ratings at AA(ind), short-term rating at F1+(ind), Rs. 10 billion senior non-convertible debenture program at AA(ind) and Rs. 2 billion lower tier 2 subordinated debt rating at AA(ind).

The negative outlook reflects concerns about the company's growing leverage, which could further increase in the absence of any substantial equity injection, Fitch said.

This would reduce the company's operational flexibility and lower its overall credit strength, the agency said.

While Fitch noted that the company is exploring plans to raise common equity, a definitive plan for raising capital has yet to be announced.

The ratings reflect its strong financial performance and established track-record as one of India's largest non-banking financial company with about 30% share in the equipment finance market, the agency added.

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