Fitch cuts Wanbury

Fitch Ratings said it downgraded Wanbury Ltd.'s national long-term rating to D(ind) from BB+(ind), along with its Rs. 2.85 billion long-term bank loans to D(ind) from BB+(ind), Rs. 410 million fund-based cash credit limits to D(ind) from BB+(ind), Rs. 140 million fund-based limits to F5(ind) from F4(ind) and Rs. 302 million non-fund based limits to F5(ind) from F4(ind).

The downgrade follows news of Wanbury's corporate debt restructuring program in lieu of liquidity pressures, Fitch said.

The agency noted that during the first half of fiscal year 2011, Wanbury's profitability was impacted by the increase in raw material prices for its active pharmaceutical ingredients, decline in formulation revenues and forex losses.

But, the company is of the opinion that profitability should be on track due to measures it is taking, Fitch said.

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