Fitch rates Adhunik Ispat loans BB+(ind)

Fitch Ratings said it assigned Adhunik Ispat Ltd. a national long-term rating of BB+(ind), along with its outstanding long-term loans aggregating Rs.74.84 million at BB+(ind). Fitch also said it assigned a national short-term rating of F4(ind) on its sanctioned non-fund based limits aggregating Rs.339 million and national long-term rating of BB+(ind) on its and cash credit limits aggregating Rs.450 million.

The outlook is stable.

The ratings reflect the company's position as a value-added manufacturer that caters primarily to the construction sector, the easy availability of raw materials from its group companies and the established presence of the group in the eastern region of India, Fitch said.

The rating recognizes the increasing integration among the group entities leading to improvement in market position and also draws strength from location advantage in terms of proximity to ports, railways and roads for transportation of raw materials and finished goods, the agency added.

The ratings are moderated by low margins and raw material price volatility risks, Fitch added.

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