Fitch rates Tirumala Balaji loans BB+(ind)

Fitch Ratings said it assigned Tirumala Balaji Alloys Pvt. Ltd. a national long-term rating of BB+(ind), a rating of BB+(ind) to its cash credit limits of Rs. 40 million and a national short-term rating of F4(ind) to its non-fund based limits of Rs. 15 million.

The outlook is stable.

Ratings reflect the relatively low operational risk of the company due to its business in the conversion of ferro chrome for Tata Steel Ltd. (AA (ind)/F1+(ind)/negative) and the consequent low inventory and receivable risks, the agency said.

Ratings also consider the capital structure with a low external debt, absence of capital expenditure plans that can increase debt levels and comfortable debt protection measures, the agency said, as well as the demonstrated track record of support from the promoters.

Ratings are constrained by the company's small scale of operations and the inherent volatility in earnings due to the cyclical nature of the steel industry.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.