Fitch rates Tata Chemicals loans AA+(ind)

Fitch Ratings said it affirmed Tata Chemicals Ltd.'s long-term foreign-currency issuer default rating at BBB- and removed it from Rating Watch negative. The agency also assigned a national long-term rating of AA+(ind), along with an AA+(ind)/F1+(ind) rating to its Rs.16 billion bank facilities and a F1+(ind) to its Rs.2 billion commercial paper program, which forms part of the company's fund-based working capital lines.

A negative outlook is assigned.

The negative outlook reflects growing concerns on the adequacy of the government of India's funding of fertilizer subsidies, in view of rising raw material prices and higher imports of fertilizers, Fitch said.

The ratings factor in its business position as the second-largest soda ash producer in the world, the agency said, and the company's strong and growing profitability across most of its business segments and geographies.

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