Fitch lowers Gallantt

Fitch Ratings said it downgraded Gallantt Ispat Ltd.'s national long-term rating to Fitch D(ind) from Fitch B+(ind).

The agency said the downgrade reflects Gallantt's delays in servicing its debt obligations from July 2011 to December 2011, due to its high working capital requirements and delays in disbursement of subsidy dues from the Government of Uttar Pradesh.

According to Fitch, the company says that around Rs. 1.25 billion of subsidy is due from Uttar Pradesh. The company expects the subsidy issue to be resolved during the first quarter of fiscal year 2013.

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