Fitch rates Pantaloon Retail bank lines A-(ind)

Fitch Ratings said it affirmed the ratings of Pantaloon Retail (India) Ltd.'s Rs.1,700 million commercial paper program and Rs.1,000 million short-term debt program at F1(ind). The agency also said it assigned an F1(ind) rating to the company's short-term bank lines of Rs.2,812 million, as well as ratings of A-(ind)/F1(ind) to its fund-based limits of Rs.7,700 million and non-fund based limits of Rs.5,950 million. Fitch also rated its long-term bank lines of Rs.14,010 million at A-(ind) and assigned the company a national long-term issuer rating of A-(ind).

The outlook is stable.

The ratings factor in 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, Fitch said.

The rating remains constrained by the performance of the company's subsidiaries, which has an adverse impact on consolidated margins due to the fact that most of these entities are still in the nascent stages, the agency said.

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