Fitch affirms Essar Projects

Fitch Ratings said it affirmed Essar Projects Ltd.'s long-term and short-term foreign-currency issuer default ratings at B, along with its $100 million working capital loans at B and recovery rating of RR4.

The outlook is stable.

The affirmation reflects the company's sound financial performance in the financial year that ended March 2011, Fitch said.

The company's revenue grew by 71% year-over-year, along with comfortable credit metrics with financial leverage of 1.9x and interest coverage of 3.7x, the agency said.

The ratings continue to be constrained by Essar Global's credit profile, which is highly leveraged, Fitch said.

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