Fitch cuts Wartsila India to AA-(ind)

Fitch Ratings said it downgraded Wartsila India Ltd.'s national long-term rating to AA-(ind) from AA(ind), along with its cash credit limits of Rs. 50 million to AA-(ind) from AA(ind) and guarantee limits of Rs. 500 million to AA-(ind)/F1+(ind) from AA(ind)/F1+(ind). The agency also said it affirmed the F1+(ind) rating on its Rs. 50 million commercial paper program carved out of its fund-based limits and letters of credit facilities of Rs. 100 million at F1+(ind).

The outlook is stable.

The downgrade reflects an expectation of the reduced rating benefit from Wartsila Corp. to Wartsila India on account of increased pressure on its core shipping and power businesses following the economic downturn, Fitch said.

Wartsila's ship engines business carries the risk of order book cancellations, reflecting the ongoing pressures of the global shipping industry, the agency said.

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