Fitch ups Patel Integrated

Fitch Ratings said it upgraded Patel Integrated Logistics Ltd.'s national long-term rating to BBB-(ind) from BB+(ind), along with its Rs. 52 million finance lease to BBB-(ind) from BB+(ind), Rs. 268.5 million cash credit facility, enhanced from Rs. 239 million, to BBB-(ind) from BB+(ind) and Rs. 210 million non-fund based limits, enhanced from Rs. 155 million, to F3(ind) from F4(ind).

The outlook is stable.

Fitch also said it withdrew the rating on its Rs. 7.5 million term loan facility as it has been fully repaid.

The upgrades are based on the consistent improvement in its profitability over 2010 and the first half of 2011, the agency said, and the expected strengthening of its credit metrics in 2011.

The ratings are constrained by the company's low bargaining power with airlines, high customer concentration in the courier consolidation business and intense competition in the road transportation business, the agency said.

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