Fitch affirms Bonai

Fitch Ratings said it affirmed Bonai Industrial Co. Ltd.'s national long-term rating at Fitch AA-(ind).

The outlook is stable.

According to the agency, the affirmations continue to reflect the company's seven-decade-long track record of maintaining a conservative financial profile with high cash balances of 7.3 billion rupees, strong EBIDTA margins of 43%, a negative net debt and high interest cover of 54.1x in the financial year ended March 2011.

The ratings continue to be constrained by the cyclical nature of the domestic iron ore industry and the sensitivity of the cash flows to iron ore price fluctuations, especially as it does not have any long-term contracts with buyers, the agency added.

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