Fitch rates Bonai Industrial

Fitch Ratings said it assigned Bonai Industrial Co. Ltd. a national long-term rating of AA-(ind), along with a national long-term rating of AA-(ind) to its long-term loans of Rs. 405.6 million and national short-term ratings of F1+(ind) to both its fund-based limits of Rs. 300 million and non-fund based limits of Rs. 100 million.

The outlook is stable.

The ratings reflect the company's long track record in the iron ore mining business, its high operating EBITDA margins and strong cash reserves, Fitch said.

The ratings are constrained by the cyclical nature of the industry and the company's sensitivity to iron ore price fluctuations, especially since it does not have any long-term contracts with buyers, the agency said.

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