Fitch rates Routes Travel BBB-(ind)

Fitch Ratings said it assigned Routes Travel Ltd. a national long-term rating of BBB-(ind) along with BBB-(ind)/F3(ind) ratings to its fund-based working capital limits of Rs. 85 million.

The outlook is stable.

The ratings are based on a consolidated view of the company and its parent, Air Travel Bureau Ltd., given their strong operational linkages, Fitch said.

The ratings are supported by the consolidated entity's 40-year presence in the corporate travel management industry, established relationships with diverse corporate clients, low client attrition rate and stable financial position, the agency said.

The ratings are constrained by its high working capital requirements, the sector's low entry barrier, its moderate size in the industry, lower EBIDTA margin compared to large-industry peers and moderate net financial leverage of 2.8x at the end of 2009, Fitch said.

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