Fitch affirms Ballarpur

Fitch Ratings said it affirmed Ballarpur Industries Ltd.'s national long-term rating at AA-(ind), along with its Rs. 3.5 billion non-convertible debenture program at AA-(ind), Rs. 1.5 billion commercial paper/ short-term debt program at F1+(ind), Rs. 272 million term loans at AA-(ind) and Rs. 3.5 billion fund- and non fund-based working capital limits at AA-(ind)/F1+(ind).

The outlook is stable.

The ratings reflect the company's continued leadership position in the Indian and Malaysian writing and printing paper segments, large distribution network and vertically integrated business model, Fitch said.

The agency said it believes the company's cost structure will improve after the successful completion of its backward integration into hardwood pulp, which will generate significant savings over market pulp costs.

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