Fitch downgrades Wockhardt

Fitch Ratings said it downgraded Wockhardt Ltd.'s national long-term rating to A(ind) from AA-(ind), along with its Rs. 2 billion long-term non-convertible debenture program to A(ind) from AA-(ind), Rs. 2.5 billion long-term loans and Rs. 2.5 billion fund-based cash credit facilities to A(ind) from AA-(ind) and Rs. 1.45 billion non fund-based limits to F1(ind) from F1+(ind).

The ratings were placed it on Rating Watch negative.

The downgrade reflects the higher leverage for 2008 than anticipated at the time of assigning the rating, Fitch said. The company's debt has increased by about Rs. 9 billion due to higher short-term loans and foreign-currency fluctuations, the agency said.

The downgrade also factors in the liquidity pressures due to increased working requirements at U.S. operations and uncertainty over the repayment of its $140 million foreign-currency convertible bond obligations falling due in September 2009, Fitch added.

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