Fitch rates Adhunik Cement BB-(ind)

Fitch Ratings said it assigned a BB-(ind) national long-term rating to Adhunik Cement Ltd. and a BB-(ind) rating to its sanctioned long-term project bank loans.

The outlook is stable.

The agency said the ratings benefit from the advanced stage of completion of a cement plant project, which mitigates the risk of cost and time overruns, and reflect the various subsidy benefits available to cement producers in the northeast region of India and the premium realizations that local producers enjoy over mainland players.

Rating constraints include the fact that the project sponsors do not have a proven track record in running a cement plant and the expected reduction in realization premiums enjoyed by local producers over mainland producers, Fitch said.

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