Fitch ups Bajaj Hindusthan

Fitch Ratings said it revised the outlook of Bajaj Hindusthan Ltd.'s national long-term rating to stable from negative and affirmed the rating at A+(ind). The agency also said it affirmed its Rs. 14.5 billion fund-based working capital limits and upgraded its Rs. 3.5 billion non fund-based limits to F1+(ind) from F1(ind) and Rs. 7.5 billion commercial paper to F1+(ind) from F1(ind).

The upgrades reflect the expected improvement in the company's consolidated financial profile from 2010 onwards, driven by the strong performance in the first six months that ended March 31, Fitch said.

Though the agency noted that the company may experience some refinancing risks over the next three years, improving liquidity and access to banks and financial institutions mitigates the risks to an extent.

The ratings also factor in the additional investment to be made by the company into a special purpose vehicle to set up coal-based power facilities with a capacity of 450 megawatts.

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