Fitch affirms Bajaj Hindusthans

Fitch Ratings said it affirmed Bajaj Hindusthans Ltd.'s national rating on its commercial paper/short-term program at F1(ind), following the increase of the program size to Rs.7,500 million from Rs.6,500 million. The agency also affirmed its national long-term issuer rating of A+ (ind), and affirmed and withdrew the A+ (ind) rating of its Rs.2,500 million non-convertible debenture program.

The outlook is negative.

The ratings reflect the drop in sugar realizations during the current sugar season impacting the entire sugar industry, Fitch said. The company's pressured EBITDA margins are expected to remain under pressure, and any upside on exports and increased consumption remains limited, the agency said.

The ratings continue to reflect the company's position as the largest sugar manufacturer in the country, a competitive cost structure and diversified revenue stream from its ethanol and power generation facility, Fitch said.

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