Fitch rates PKS loans F4(ind)

Fitch Ratings said it assigned PKS Ltd.'s fund-based limits of Rs. 2322.7 million and its non-fund based limits of Rs. 345 million national short-term ratings of F4(ind).

The ratings reflect the low margin and competitive nature of PKS' trading business, consistently low EBITDA margins, high working requirements and stretched financial profile, Fitch said. The financial leverage for the past five years has ranged between 5.2x to 13.4x , the agency said, and was 7.8x in fiscal year 2008.

The ratings also take into account the company's long track record in the trading of agro commodities, a large customer base with geographical and product diversity, Fitch said.

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