Fitch rates Essar Projects loans B

Fitch Ratings said it assigned Essar Projects Ltd. a long-term foreign-currency issuer default rating of B, along with its short-term foreign-currency issuer default rating of B and its $100 million working capital loans a rating of B.

The outlook is stable.

The ratings factor in the Essar Group's four-decade long construction sector operating history in executing large and complex projects, Fitch said.

The ratings also benefit from its large $5.6 billion order book as of June 2010 and its comfortable credit metrics, the agency said.

The ratings are constrained by the inherent volatility of the domestic construction sector and the company's high working capital requirements as it continues on a rapid growth phase, Fitch said.

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