Fitch rates Indo Farm Equipment, loans BBB(ind)

Fitch Ratings said it assigned Indo Farm Equipment Ltd. a national long-term rating of BBB(ind), along with a rating of BBB(ind) on its outstanding Rs. 60 million long-term bank loans, BBB(ind)/F3(ind) on its Rs. 390 million fund-based working capital limits, and BBB(ind)/F3(ind) on its Rs. 40 million non-fund based working capital limits.

The outlook is stable.

The ratings reflect its decade-long operational track record in the domestic tractor industry, low financial leverage except for 2009, and recent diversification into the production of crane and genset engines, Fitch said.

The ratings are constrained by Indo Farm's small size of operations, presence as a marginal player in the Indian tractor industry, a low brand recall for its products and low capacity utilization levels, the agency said.

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