Fitch: Om Shiv on watch

Fitch Ratings said it placed Om Shiv Estates' national long-term rating of B(ind) on rating watch negative along with the B(ind) rating of its long-term loan totalling Rs. 183 million.

The rating action reflects the increased uncertainty over the timely repayment of debt by the company due to a substantial delay in project execution and the inability to tie up a management contract on time, the agency said.

The hotel project was due to commence operation by end-June 2009, but cost escalation and failure to associate hotel management led to a delay of over nine months, Fitch said.

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