Fitch affirms IOT Infrastructure

Fitch Ratings said it affirmed IOT Infrastructure & Energy Services Ltd.'s national long-term rating at AA-(ind), along with its Rs. 1.89 billion long-term loans, enhanced from Rs. 1.37 billion, at AA-(ind); Rs. 2.5 billion cash credit facility, enhanced from Rs. 1.5 billion, at AA-(ind); Rs. 500 million short-term loans at F1+(ind); Rs. 1 billion letter of credit facility at F1+(ind); Rs. 7.19 billion bank guarantee facility, enhanced from Rs. 5.75 billion, at AA-(ind)/F1+(ind); Rs. 8.6 billion other working capital facility, enhanced from Rs. 7.7 billion, at AA-(ind)/F1+(ind); and Rs. 300 million short-term debt/commercial paper program at F1+(ind).

The ratings factor in the company's order book position, strong market position in the terminal business, experience in engineering, procurement and construction in the oil and gas sector and comfortable credit metrics, Fitch said.

The ratings also benefit from its strong operational and strategic linkages with its parents, Oiltanking Gmbh and Indian Oil Corp. Ltd., the agency said.

The ratings are constrained by its long working capital cycle, largely fixed-price contracts and high project concentration, Fitch added.

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