Fitch rates Pantaloon debt F1(ind)

Fitch Ratings said it assigned an F1(ind) national rating to Pantaloon Retail India Ltd.'s proposed Rs.1,000 million short-term debt program and affirmed the F1(ind) rating of its Rs.1,700 million commercial paper program.

The rating considers the company's leadership position in the fast-growing domestic retail segment, its proven ability to manage large scale expansions leading to strong revenue growth and its brand equity in the retail space, the agency said.

The company is venturing into various related businesses, including real estate, restaurants and consumer finance, investing about Rs.1 billion in these entities in 2006. The risks of these new businesses are partly mitigated by the expertise of its partners and the company's increased focus on unlocking value in these entities, Fitch said.

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