Fitch affirms Raychem RPG

Fitch Ratings said it affirmed Raychem RPG Ltd.'s national long-term rating at A+(ind), along with its Rs. 444.9 million long-term bank loans at A+(ind), Rs. 875 million fund-based working capital facility at A+(ind)/F1+(ind), non-fund based working capital facility of Rs. 1.1 billion at F1+(ind) and its commercial paper program of Rs. 50 million at F1+(ind).

The outlook is stable.

The ratings consider the support from Raychem's sponsors, RPG group and Raychem, which each hold a 50% stake, Fitch said.

The ratings also reflect the comfortable debt protection measures with peak net debt-to-EBITDA ratio of 1.14x in 2008, the agency said.

The ratings are primarily constrained by high customer concentration, Fitch said, and the high proportion of sales to state government entities, which has increased collection periods.

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