Fitch rates Aradhya Steel BB(ind)

Fitch Ratings said it assigned Aradhya Steel Pvt. Ltd. a national long-term rating of BB(ind), along with a BB(ind)/F4(ind) to its fund-based working capital limits of Rs. 210 million and to its non-fund based limits of Rs. 80 million, as well as a BB(ind) rating to its outstanding term loans of Rs. 281.33 million.

The outlook is stable.

The ratings reflect the company's track record as a supplier of steel wire products to customers in India's automobile, auto-components and infrastructure sectors, Fitch said.

The ratings also reflect the company's recovery from 2009's weak showing, the agency said.

The ratings are constrained by the stressed levels of leverage metrics, given the large debt-funded capital expenditure program, Fitch said.

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