Fitch rates Piccadily Hotels B-(ind)

Fitch Ratings said it assigned Piccadily Hotels Private Ltd. a national long-term rating of B-(ind) and its Rs. 1.5 billion long-term loan a B-(ind) rating.

The outlook is stable.

Ratings reflect Piccadily's established track record of more than three decades in the hospitality industry and the healthy debt-equity mix of 1x for its upcoming projects, according to the agency.

The company's Delhi hotel is associated with the well-known Hilton brand, and the company expects that similar ties with international hotel brands for its upcoming projects would lower the initial operational risk as it would gain access to the global brand's network and clientele, the agency noted.

Ratings are constrained by high financial leverage, tight liquidity condition and high execution risk as a sizable portion of the company's portfolio is under construction, the agency said.

Piccadily's financial leverage was 162x total adjusted net debt to EBITDA in fiscal 2010.

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