Fitch rates Greaves Cotton AA-(ind)

Fitch Ratings said it assigned a national long-term issuer rating of AA-(ind) with a stable outlook to Greaves Cotton Ltd., along with AA-(ind) ratings to the company's cash credit limits aggregating Rs. 650 million, term loans aggregating Rs. 524.1 million and other limits of Rs. 300 million, and an F1+(ind) rating to its non-fund based limits totaling Rs. 2.1 billion.

Fitch also affirmed the company's Rs. 300 million commercial paper program at F1+(ind).

The ratings factor in the company's strong operating performance, in terms of margins and growth, its positive free cash flows despite capital expenditure outflows and consequent improvement in debt protection measures, Fitch said.

The ratings are constrained by the high dependency of the company on the three-wheeler market, exposing it to the inherent cyclicality of the industry, the agency said.

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