Fitch rates Omax Autos debt F1

Fitch Ratings said it assigned a short-term rating of F1(ind) to Omax Autos Ltd.'s Rs. 1.25 billion commercial paper/short-term debt program.

The rating reflects Omax's relatively moderate financial profile as characterized by low net profit margins and fairly stable EBITDA margins despite rising input costs, Fitch said, as well as reasonably moderate debt metrics keeping in view the available cash balances.

The rating is moderated by high concentration risk on the two-wheeler market in general, the agency said. The rating also factors in the company's increasing leverage and its expansion plans, including a new plant for chassis manufacturing, Fitch added.

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