Fitch rates Deltronix BBB(ind)

Fitch Ratings said it assigned Deltronix India Ltd. a national long-term rating of BBB(ind).

The outlook is stable.

The rating reflects the stable performance of the company's Indian operations and the strong relationship of its 100% subsidiary - Francaise De Roues - with key automobile companies including Peugeot SA (BB+/positive), Nissan Motor Co., Ltd. (BBB-/positive) and Renault SA (BB+/stable), the agency said.

Ratings also factor in the company's plans to start a new one million units per annum alloy wheel manufacturing facility in Tamil Nadu (India) by February 2012, the agency noted.

Ratings are constrained by the company's high exposure to uncertain European markets and the associated regulatory risk, given that the company's alloy wheel business strongly depends on the automobile industry in Europe, the agency said.

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