Fitch affirms Wartsila

Fitch Ratings said it affirmed Wartsila India Ltd.'s national long-term rating at AA-(ind).

The outlook remains stable.

The agency also affirmed the company's Rs. 50 million cash credit limits at AA-(ind), Rs. 50 million commercial paper rating at F1+(ind), Rs. 100 million letters of credit facilities at F1+(ind) and Rs. 500 million bank guarantee facilities at AA-(ind)/F1+(ind).

The affirmations reflect the company's healthy revenue growth and stable margins, coupled with its continued negative net debt position in 2009, Fitch said.

The company's service business continues to strengthen with increased dry-docking owing to a reduced global shipping activity, the agency said.

But the outlook of the ship power business that forms a major part of Wartsila's revenue is still expected to remain subdued for another 10 to 12 months, Fitch added.

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