Fitch affirms Premium Energy Transmission

Fitch Ratings said it affirmed Premium Energy Transmission Ltd.'s national long-term rating of A+(ind) and assigned an A+(ind) rating to its Rs. 150 million cash credit limit. Its bank loans are affirmed at F1(ind) for its Rs. 300 million short-term debt, A+(ind) for its Rs. 300 million of fund-based limits and A+(ind) for its Rs. 500 million long-term debt.

The ratings reflect the company's moderate leverage, strong margins and diversified customer and product base, which helped the company weather the economic downturn without putting pressure on its balance sheet, Fitch said.

The company's established track record in energy transmission products in India and the diversity of its products have allowed it to maintain its market share even though its margins declined during 2009 due to weaker manufacturing activity, the agency said.

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