Fitch cuts Tecumseh Products

Fitch Ratings said it downgraded Tecumseh Products India Pvt. Ltd.'s national long-term rating to B-(ind) from B(ind) and its fund-based working capital banking lines of Rs. 530 million to B-(ind)/F4(ind) from B(ind)/F4(ind). The agency also affirmed the company's non-fund-based working capital banking lines of Rs. 532.5 million at F4(ind).

The outlook is stable.

The downgrades reflect the company's inconsistent financial performance, with EBITDA losses in three out of the last four years, Fitch said.

The ratings consider the highly competitive and price-sensitive nature of the industry, especially given competition from low-cost Chinese compressors, the agency said, and the high volatility in the prices of major raw materials.

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