Fitch cuts Omaxe debt to A-(ind)

Fitch Ratings said it downgraded Omaxe Ltd.'s long-term issuer rating to A-(ind) from A(ind) and revised the outlook to negative from stable. The agency also said it downgraded its A-(ind) Rs.3000 million long-term debt program to A-(ind) from A(ind).

The downgrade reflects high debt levels and increasing liquidity risk, Fitch said, adding that the company's financial leverage has remained substantially higher than anticipated.

Fitch said it expects that Omaxe's profit margins, credit metrics and cash flow will continue to be under pressure as the housing environment remains tough in the short term.

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