Fitch ups Mahindra Ugine Steel view to positive

Fitch Ratings said it revised Mahindra Ugine Steel Co. Ltd.'s outlook to positive from negative.

The agency also affirmed the company's national long-term rating at BBB+(ind), outstanding Rs. 1.63 billion long-term debt at BBB+(ind), Rs. 1.4 billion fund-based working capital limits at BBB+(ind)/F2(ind) and Rs. 2.2 billion non-fund based working capital limits at F2(ind).

The outlook revision reflects the company's strong growth in the auto segment, continuous efforts to diversify the customer segment for its alloy steel business and the likely improvement in its profitability, Fitch said.

The agency said believes that the company's power source shifting to KSK Energy Ventures Ltd. will lead to a significant margin expansion and provide more cushion to absorb any fluctuations in price/cost volatility.

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