Fitch rates Indo-Continental Hotels loans BBB(ind)

Fitch Ratings said it assigned Indo-Continental Hotels & Resorts Ltd. a national long-term rating of BBB(ind), a rating of BBB(ind) to its Rs. 403.2 million term loans, BBB(ind)/F3(ind) rating to its Rs. 40 million fund-based working capital limits and an F3(ind) rating to its Rs. 6.8 million non-fund based limits.

The outlook is stable.

The ratings reflect the company's established track record in the hospitality business with good brand recognition and moderate operational efficiencies in its hotel segment, such as comfortable occupancy rates and an ability to command a moderate average rent per room even during the global economic downturn, Fitch said.

The ratings are constrained by its small-size of operations, ongoing capital expenditure plans and cyclicality in the hospitality industry, the agency said.

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