S&P rates Bharat Hydel BB(ind)

Fitch Ratings said it assigned Bharat Hydel Projects Private Ltd. a national long-term rating of BB(ind).

The outlook is stable.

Ratings are based on a consolidated view of Bharat Construction (BB(ind)/stable) and the issuer as the two companies are under common ownership and have strong operational linkages and fungible funds, the agency said.

Ratings reflect more than a decade-long presence of both the companies in the civil construction industry, coupled with their established relationships with diverse corporate and government bodies and technical expertise in executing hydro-power related construction works, the agency said.

Ratings also reflect the strong order book position that provides revenue visibility, comfortable financial leverage of 0.81x net debt to EBITDA in fiscal 2011 and the double digit growth in revenue over fiscal 2007 to 2011 at the consolidated level, Fitch said.

Ratings are moderated by the company's inability to bid for large-value contracts due to its relatively small size and its stressed liquidity position, the agency noted.

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