Fitch rates Unitech Machines debt F1(ind)

Fitch Ratings said it assigned a national short-term rating of F1(ind) to the Rs.250 million short-term debt/commercial paper program of Unitech Machines Ltd.

The rating reflects its stable revenues from the auto component division, Fitch said, as well as growth and diversification benefits accruing from the engineering and infrastructure division.

The rating remains constrained on account of the high level of concentration risk to Hero Honda Motors Ltd., which contributed about 90% of its auto division revenues in 2007, the agency said. Large debt-led expansion plans impacting financial leverage also may potentially act as a negative rating trigger, Fitch added.

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