Fitch affirms QH Talbros

Fitch Ratings said it affirmed QH Talbros Ltd.'s national long-term rating, Rs. 166.5 million term loans, Rs. 410 million fund-based limits and Rs. 140 million non-fund-based limited at BBB(ind), assigned an F2(ind) short-term rating to the fund-based limits and upgraded the short-term rating on the non-fund-based limited to F2(ind) from F3(ind).

The outlook is stable.

The agency said the upgrade in the short-term rating reflects QH Talbros' comfortable liquidity position in view of better working capital management.

The ratings continue to reflect the company's strong market position in the steering and suspension components business with a track record of more than two decades and a well-diversified customer base with a good mix of exports and domestic customers, Fitch said.

The ratings are constrained by QH Talbros' moderate size of operations with traditionally low EBITDA margins, the agency said.

The total adjusted debt net of cash-to-operating EBITDA ratio is 2.7 times.

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