Fitch affirms Prime Impex

Fitch Ratings said it affirmed Prime Impex Ltd.'s Rs. 2.86 billion non-fund based limits, enhanced from Rs. 1.91 billion, at F3(ind).

The affirmation reflects the company's consistent performance from 2009 through 2010 with the balance sheet debt comprising loans from promoters only, Fitch said.

The rating is constrained by the company's low EBITDAR margins of 1.8% in 2010, the agency said, and relatively low interest coverage of 1.3x in 2010.

The rating is further constrained by commodity concentration risk as the company only trades in pulses, which exposes it to government import regulations, Fitch added.

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