Fitch cuts Varun loans to A(ind)

Fitch Ratings said it downgraded the national long-term rating of Varun Shipping Co. Ltd. to A(ind) from A+(ind), along with its Rs.2.24 billion long-term bank loans to A(ind) from A+(ind), its Rs.50 million short-term overdraft facility to F1(ind) from F1+(ind) and its overdraft facility of Rs.110 million (reduced from Rs.160 million) to F1(ind) from F1+(ind). Fitch also said it assigned an A(ind) rating to its long-term bank loan of Rs.8.47 billion.

The outlook is negative.

The downgrade reflects the increased leverage, pressure on margins and rise in volatility in the charter rates of all segments of its fleet, Fitch said.

The ratings also reflect its leadership position in the Indian LPG transportation sector, the agency said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.