Fitch: Value outlook stable

Fitch Ratings said it revised Value Industries Ltd.'s outlook to stable from negative and affirmed its national long-term rating at BBB+(ind).

The agency also affirmed the company's fund-based limits at BBB+(ind) and non fund-based limits at F2+(ind).

The outlook revision reflects the action on Videocon group's flagship company Videocon Industries Ltd. (A-(ind)/stable/F1(ind)) in August 2010, coupled with the completion of Value Industries' Rs. 4.22 billion capital expendtures for replacing old machinery and building new moulds in fiscal 2009.

Although leverage has increased from 2009 levels due to the capex, Fitch said it is likely to improve over the short-term, supported by higher turnover from the new capacities and market growth.

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