Fitch rates Food Corp. program F1+(ind)

Fitch Ratings said it assigned an F1+(ind) rating to Food Corp. of India's short-term borrowing program of Rs. 100 billion. The company proposes to issue commercial paper of Rs. 30 billion as a part of this program that will be carved out of its working capital limit of Rs. 344.45 billion, which is guaranteed by the government of India.

The rating benefits from the strong financial, managerial and operational linkages with the government, Fitch said.

The ratings also are based on state ownership, active participation of the government in fixing the procurement and issue price of food grains, the agency said, and its close integration with the government's policy apparatus.

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