Fitch ups Mokalbari Kanoi Tea

Fitch Ratings said it upgraded Mokalbari Kanoi Tea Estate Pvt. Ltd.'s national long-term rating to B+(ind) from B(ind), along with its Rs. 105 million long-term loans and Rs. 90 million fund-based limits to B+(ind) from B(ind). The agency also said it assigned a short-term rating of F4(ind) to its Rs. 600,000 non-fund based limits.

The outlook is stable.

The company benefited from the recent capital expenditure completed and better price realizations for tea in 2010, the agency said. The ratings also are supported by the long experience of the company's promoters in the domestic tea industry and the favorable market outlook driven by the rising demand and global production shortfall of tea, Fitch said.

The ratings are constrained its relatively small size, higher working capital requirements and susceptibility of its agricultural operations to climatic variations, the agency said.

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